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Please solve, thank you. 1.Assume a STACKLEBERG Oligopoly. Firm 1 is the Leader, and Firm 2 is the Follower. Total Demand for the product and

Please solve, thank you.

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1.Assume a STACKLEBERG Oligopoly. Firm 1 is the Leader, and Firm 2 is the Follower. Total Demand for the product and the Total Cost Curves for the two rms are shown as the following: Total Demand: P = 4000 - 5(Q1 + 02) Leader Total Cost C1 = 100 +20001 +2Q12 Follower Total Cost C2 = 400 +4000: +2Qz2 Answer the Following Questions about this oligopoly: aExplain how a Stackleberg Oligopoly works, what each rm believes, and how it makes its decisions. b.Compute the Follower 's Reaction Function. Show your work. c.Given the answer to \"4:,\" what is the demand curve the Leader now faces? d.Solve for the prot maximizing level of Q and P for the LEADER. e.Solve for the prot maximizing level of Q and P for the FOLLOWER

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