stackelberg duopoly model

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  • Опубліковано 2 гру 2024
  • An industry has two firms- a #Stackelberg leader and a follower. The price of the industry output is given by P = 36-Q, where Q is the total output of the two firms. The follower has a marginal cost of $0. The leader has a marginal cost of $9. How much should the leader produce in order to maximize profits?
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КОМЕНТАРІ • 9

  • @sri_kantsanwariya5466
    @sri_kantsanwariya5466 6 місяців тому

    Really, amazing teaching style.

  • @abirhamayalew4844
    @abirhamayalew4844 2 роки тому +1

    I liked your detailed explanation.

    • @ECONMATHS
      @ECONMATHS  2 роки тому

      Thanks for the appreciation brother. Please share this channel with your friends

  • @sefasaime2552
    @sefasaime2552 Рік тому

    Well done

  • @aijaz6570
    @aijaz6570 2 роки тому +1

    Thank sir

  • @Esther_Myrtle_Mate
    @Esther_Myrtle_Mate Рік тому

    How did the q1+q2
    Turn to q1-q2?

    • @senchereyalexis6959
      @senchereyalexis6959 Рік тому

      The negative sign affects both Q

    • @aghamuhammadyousaf9462
      @aghamuhammadyousaf9462 11 місяців тому

      What would be the output of the follower firm ? The pit put of the follower must be half of the output of the leader firm but when we put this optimum out put of leader firm which is 9, the output of follower turns out to be 13.5 which according to the theory is wrong …