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The inverse demand for a homogeneous-product Stackelberg duopoly is P=10,000 5Q. The cost structures for the leader and the follower, respectively, are CL(QL)= 3,000QL and
The inverse demand for a homogeneous-product Stackelberg duopoly is P=10,000 5Q. The cost structures for the leader and the follower, respectively, are CL(QL)= 3,000QL and CF(QF)=5,000QF a. What is the follower's reaction function? QF=QL b. Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c. Determine the equilibrium market price. $ d. Determine the profits of the leader and the follower. Leader profits: \$ Follower profits: \$
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