Example
Suppose the inverse demand function for two firms in a homogeneous-product
Stackelber...
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Mathematics, 25.03.2021 03:40 skatingflower
Example
Suppose the inverse demand function for two firms in a homogeneous-product
Stackelberg duopoly is given by
P=50-(Q+ Q2)
and the cost functions for the two firms are
C, (Q₂)=2Q,
C2(Q2)=2Q2
Firm 1 is the leader, and firm 2 is the follower.
What is firm 2's reaction function?
What is firm 1's output?
What is the market price?
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Answers: 3
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