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

Economics

The inverse demand for a homogeneous-product Stackelberg duopoly is P = 20,000 5Q. The cost structure for the leader and follower, respectively are CL(QL) = 3000QL and CF(QF) =4000QF.

A. What is the follower's reaction function?
B. Determine the equilibrium output level for both the leader and the follower.
C. Determine the equilibrium market price.
D. Determine the profits of the leader and the follower.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M966858

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