In a market defined by the inverse demand function P = 200-2Q, two firms simultaneously decide the amount of production. The firms' total cost functions are symmetric and defined as TC = 20 qi. In this case, calculate the maximum amount that the first company would be willing to pay to become the Stackelberg leader by showing all your transactions.

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Finding the Maximum Payment for Stackelberg Leadership Heres how to calculate the maximum amount the first firm leader would be willing to pay to become the Stackelberg leader 1 Solve for Cournot Equi... View the full answer