Find the stackelberg equilibrium firm outputs

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Output is homogenous and the demand curve is P = 448 − Q. There are two firms with identical costs given by C = q2 i where qi is the production of firm i.

The marginal cost of firm i is MCi(qi) = 2qi .

(a) Find the Cournot equilibrium firm outputs. (b) Find the Stackelberg equilibrium firm outputs.

Reference no: EM13998725

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