Question 27 3.33 pts Two ophthalmologists, Smith and Jones, are duopolists in a medium sized local market for laser corrective eye surgery where the demand curve is P = 4,360 - 2.5QTOT. QTOT is the number of surgeries performed by both doctors combined. The marginal cost for both doctors is $1,000, clinic size. Each doctor is to choose the size of his own clinic (= QF & QR.) Neither doctor will know the exact choice of the other when deciding on his own Consider a drop in marginal cost (and AC) for Jones to $800 which allows him to take a leadership position in this market (Stackelberg, Model.) He assumes Smith will follow in sequence based on his best response function. Determine the new industry (total of both firms) output. O 936 896 976 1,200 O 1,048