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Business, 29.10.2019 05:31 courtneygaffney4755

Consider the following version of the stackelberg model. there are two firms, 1 and 2. 1 is the leader and chooses its quantity first. 2 is the follower and chooses its output after 1 chooses. they produce identical goods and so if q1 = is 1’s output and q2 = 2’s output then market output is q1 + q2. each produces output at a constant average and marginal cost of 3. the market demand curve is p = 19 – 2(q1 + q2).

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Consider the following version of the stackelberg model. there are two firms, 1 and 2. 1 is the lead...
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