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question 1 Question 1 Suppose two firms face the same constant average (and marginal) cost of AC = MC = $5. Both firms face a

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Question 1 Suppose two firms face the same constant average (and marginal) cost of AC = MC = $5. Both firms face a market demand curve given by Qi + Q2 =53 - P. Suppose Firm 1 is the Stackelberg leader (that is, makes its output decisions before Firm 2). a) Find each firms reaction function b) How much will each firm produce, and what will its profit be

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