10 pts Question 14 Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2
10 pts Question 14 Consider the following Stackelberg duopoly. Both firms produce a homogenous good. Firm 1 chooses how much to supply first. Firm 2 chooses how much to supply after observing the quantity supplied by firm 1. The market demand is Q=120 -4P. For firm 1, the marginal cost of production is . For firm 2, the marginal cost of production is 92. What function describes the reaction of firm 2 to the observed quantity produced by firm 1? 48 - 91 O 3 O 120 - q1 6 O 60 - 91 92 = 6 O 20- 91 92 2
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