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Suppose we have two firms, a leader and a follower. The leader's cost function is given by C L(qL) = 10 + on and the

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Suppose we have two firms, a leader and a follower. The leader's cost function is given by C L(qL) = 10 + on and the follower's cost function is C f(qf) = Sqf + 5. Market demand is given by P (Q) = 250 7 5Q, where Q 2 61f + (IL. a) (10 points) Find equilibrium price and quantities b) (15 points) Find profits, Consumer surplus and Total surplus

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