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Assume an incumbent firm A, with MC = 6 who is currently facing the market demand given by P = 50 - Q. Firm B,

Assume an incumbent firm A, with MC = 6 who is currently facing the market demand given by P = 50 - Q. Firm B, with MC = $14, is considering to enter the market. If it enters, Firm A will act as a Stackelberg leader making its quantity decision first. What is Firm A's quantity of production in this sequential game?

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