Now suppose the two firms engage in Stackelberg market competition. Assume firm 1 is the leader (first-mover)
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Question:
Now suppose the two firms engage in Stackelberg market competition.
Assume firm 1 is the leader (first-mover) and firm 2 is the follower firm (second-mover).
Marginal profit function of Stackelberg leader: 1500 - 2Q1
What will be the equilibrium output level produced by the Stackelberg leader (first-mover) firm?
Group of answer choices
1250
900
750
500
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