Equilibrium price and profit in stackelberg duopoly

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Reference no: EM1311722

The inverse demand for a homogeneous product Stackelberg duopoly is P = 20,000 - 5Q. the cost structures for the leader and the follower, respectively, are CL (QL) = 3,000QL and Cf (Qf) = 4,000Qf.

a. Determine the equilibrium market price

b. Dtermine the profits of the leader and the follower

Reference no: EM1311722

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