Question
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 10,000 4Q. The cost structures for the leader and the follower, respectively, are CL(QL)
The inverse demand for a homogeneous-product Stackelberg duopoly is P = 10,000 4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF.
a) Determine the equilibrium output level for both the leader and the follower.
b) Determine the profits of the leader and the follower.
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
