What are their equilibrium strategies and quilibrium outcome

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Reference no: EM131103797

Let the inverse demand curve be p(q) = a − bq. Suppose there are two firms, with constant marginal cost equal to C.

A) (Cournot) If both firms move simultaneously, what are their equilibrium strategies and what is the equilibrium outcome?

B) (Stackelberg) If the first firm moves before the second firm, how does your answer change?

Reference no: EM131103797

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