Question: Assume an inverse demand function D(p) = a - bp. The leader has a cost function, c(y) = cy and the follower has a

Assume an inverse demand function D(p) = a - bp. The leader has a cost function, c(y) cy and the follower has

Assume an inverse demand function D(p) = a - bp. The leader has a cost function, c(y) = cy and the follower has a cost function, c(y2) = y2/2. Solve for the leader's profit-maximizing output

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