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What is the follower reaction function

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Reference no: EM132616978

The inverse demand for a homogeneous-product Stackelberg duopoly is PQ.CLLLFFFQF QLLeader output: = 24,000 -4 The cost structures for the leader and the follower, respectively, are (Q) = 3,000Q and C (Q) = 6,000Q..

a. What is the follower's reaction function?

b. Determine the equilibrium output level for both the leader and the follower.

c. Determine the equilibrium market price.

d. Determine the profits of the leader and the follower.

Reference no: EM132616978

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