The inverse demand for a homogeneous-product stackelberg, Ask an Expert

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The inverse demand for a homogeneous-product Stackelberg duopoly is P = 20,000 -4Q. The cost structures for the leader and the follower, respectively, are CL(QL) = 2,000QL and CF (QF) = 4,000QF.. a. What is the follower’s reaction function? QF = - QL b. Determine the equilibrium output level for both the leader and the follower. Leader output: Follower output: c. Determine the equilibrium market price. $ d. Determine the profits of the leader and the follower. Leader profits: $ Follower profits: $

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91992443

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