Game of quantity competition between two firms

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Consider a Stackelberg game of quantity competition between two firms.

Firm 1 is the leader and firm 2 is the follower. Market demand is described by the inverse demand function p = 100 ? 2Q. Each firm has a constant unit cost of production equal to 20. Solve for the Stackelberg-Nash equilibrium outcome and profit of each firm.

Reference no: EM13838066

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