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The inverse demand for a homogenous-product Stackelberg duopoly is P = 10-Q where Q=Q1 + Q2. The cost structure for the two firms, respectively, are
The inverse demand for a homogenous-product Stackelberg duopoly is P = 10-Q where Q=Q1 + Q2. The cost structure for the two firms, respectively, are Ci(Q1) = 4Q1 and C2(Q2) = 2Q2. Suppose Firm 1 is the leader. What is the equilibrium profit for the follower? 8 9 2 4
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