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What are the key features of a Stackleberg competition in an oligopolistic market. Consider the demand and cost functions faced by the two firms in
What are the key features of a Stackleberg competition in an oligopolistic market. Consider the demand and cost functions faced by the two firms in a Stackleberg type contesting market given as follows: Demand function: P = 82 - 4Q and cost function: C = 2Q; i=1,2 Q = Q1 + Q2 Where P, Q and C represent price, quantity and cost, respectively. Subscripts 1 and 2 represent firm 1 and 2, respectively. Given the above information, calculate and explain the equilibrium output of each firm
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