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Business, 06.08.2021 03:10 JayLiz1737

An industry has two firms producing at a constant unit cost of $10 per unit. The inverse demand curve for the industry is p = 100 - .5q. suppose that firm 1 is a Stackleberg leader in choosing its quantity (i. e. firm 1 chooses it's quantity first, knowing that firm 2 will observe firm 1's quantity when it chooses its own output.) How much output will firm 2, the follower, produce?

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