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Two firms compete as a Stackelberg duopoly. The demand they face is P = 402 - Q. The cost function for firm 1(the leader) is

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Two firms compete as a Stackelberg duopoly. The demand they face is P = 402 - Q. The cost function for firm 1(the leader) is Ci(Q1) = 2Q1, and the cost function for firm 2 (the follower) is C2(Q2) = 6Q2. The profits earned by the firms are Multiple Choice A1 = $20.806 and 2 $9.991 11 - $20,402 and 12 = 59.409 11 = $18,856 and 12 $10,091

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