A market is served by a Stackleberg duopoly, each with a total cost TC = wL + rK = 100q + 5. The market inverse demand curve is P = 2,000 – 50Q, where Q is the total market output produced by the two firms, q1 + q2. What is the follower's reaction function?

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Question Answer Let firms be 1 First Mover and 2 Foll... View the full answer