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Consider an industry with two firms

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0608(ii) Consider an industry with two firms ? a Stackelberg leader and a follower. The price of the industry output is given by P = 84 ? Q, where Q is the total output of the two firms. The follower has a marginal cost of $0. The leader has a marginal cost of $21.;a) How much should the leader produce in order to maximise profits?;b) How much profits will the leader make?;c) How much will the follower produce?;d) How much profits will the follower make?

 

Paper#28583 | Written in 18-Jul-2015

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