Quiz 28. CourStack

Quiz 28. CourStack - 2 the output levels of the firms The...

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Shomu Banerjee ECON 201 COURNOT STACKELBERG DUOPOLY Suppose two duopolists produce the same identical product. The market demand for their product is given by the inverse demand curve p = 120 – q 1 q 2 , where p is the price, and q 1 and q
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Unformatted text preview: 2 the output levels of the firms. The cost of producing one unit is $10 for firm 1 and $20 for firm 2. Firm 1 is the market leader, firm 2 the follower. How much will each firm produce in a Stackelberg equilibrium?...
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