Equilibrium price and profit in Stackelberg Duopoly.
The inverse demand for a homogeneous product Stackelberg duopoly is P = 20,000 - 5Q. The cost structures for the leader and the follower, respectively, are CL (QL) = 3,000QL and Cf (Qf) = 4,000Qf)
a) Determine the equilibrium market price
b) Determine the profits of the leader and the follower