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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How did the q1+q2
Turn to q1-q2?
The negative sign affects both Q
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 …