Business, 24.12.2019 22:31 catycait27p5rc5p

The inverse demand for a homogeneous-product stackelberg duopoly is p = 16,000 - 4q. the cost structures for the leader and the follower, respectively, are cl(ql) = 4,000ql and cf (qf) = 6,000qf..

a. what is the followers reaction function?

qf =

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: $

Answers: 1

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The inverse demand for a homogeneous-product stackelberg duopoly is p = 16,000 - 4q. the cost struct...

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