Identify the equilibrium quantities

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Return to the original duopoly tutoring problem with Caroline and Mason. Use the same total demand function, QD = 100 - 2 p , and the same cost function for each player, C(q) = 15q.

Consider a variation in the game in which the players move sequentially, where Caroline chooses her quantity and then Mason chooses his quantity, having seen Caroline's choice. Solve this game using backwards induction (roll back). Identify the equilibrium quantities, the equilibrium price, and the equilibrium profits.

Reference no: EM132460803

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