Calculate the profit maximizing output for industry leader

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The automobile market has been used as an example of a Stackelberg oligopoly where one firm is the industry leader and the other firms will follow that lead. Assume the following equations were estimated for the automobile industry:

P=1000-(Q1+ Q2)

Ci=4Qi

Where Q2 represents the total output of all the followers in the industry.

Calculate the profit maximizing output for the industry leader, Q1.

Calculate the profit maximizing output tor the industry followers, Q2.

Calculate the profits for the leader.

Calculate the profits for the followers.

Reference no: EM131169310

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