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 equilibrium output for each firm is:
A. Q1 = 202 and Q2 = 97
B. Q1 = 200 and Q2 = 99
C. Q1 = 232 and Q2 = 102
D. Q1 = 198 and Q2 = 100
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Industrial Relations in Canada
Authors: Fiona McQuarrie
4th Edition
978-1-118-8783, 1118878396, 9781119050599 , 978-1118878392
