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A market that follows the price leadership of a barometric firm has the following demand function: Q=1400-2P The follower firms have the following aggregate marginal
A market that follows the price leadership of a barometric firm has the following demand function:
Q=1400-2P
The follower firms have the following aggregate marginal cost function:
MCf=100=0.5Qf
The barometric firm has a horizontal marginal cost curve equal to $300.
The barometric firm will choose a price of $____and an output of____, and the follower firms will follow by producing an output of____.
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