Question
imagine a world in which fireworks are homogenous divisible goods for canada day. The demand for the firework is P=210 - 1/10q anice sets up
imagine a world in which fireworks are homogenous divisible goods for canada day. The demand for the firework is P=210 - 1/10q anice sets up higher fire works stand on the morning of june 30 and brings qa fireworks to sell. Anice fire works comes from wholsaler who chrages her 20$ per firework (i.e, ca(qa)=20qa) after observing anice stand and therefore after observing qa, bernard sets up his own stand at noon of june 30 and chose to stock qb fireworks. Bernerds buys his fireworks rom wholesaler who chrages 10$ per firework after bernerd stands his set up consumers purshase his fireworks and the price is set according to stackelberg competion.
q1) what is burnurds optimal stratgey q2)what is anice optimal stratgey
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