Question
Two firms compete as a Stackelberg duopoly. The demand they face is P = 402 - Q. The cost function for firm 1 (the leader)
Two firms compete as a Stackelberg duopoly. The demand they face is P = 402 - Q. The cost function for firm 1 (the leader) is C1(Q1) = 2Q1, and the cost function for firm 2 (the follower) is C2(Q2) = 6Q2. The profits earned by the firms are:
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Microeconomics A Contemporary Introduction
Authors: William A. McEachern
9th edition
978-0538453714, 538453710, 978-1111415921
