ppose two firms face market demand of P=150-Q, where Q = q1+ q2. Both ns have the same unit cost of C, C=28. Assume the firms compete a la ackelberg. Firm 1 is the leader and Firm 2 is the follower in this market. a) What is the follower's total revenue function? b) Determine the equilibrium output level for both the leader and the follower. c) Determine the equilibrium market price, the profits of the leader and the follower. te: The writing is clear and abbreviations are not allowed.

ppose two firms face market demand of P=150-Q, where Q = q1+ q2. Both ns have the same unit cost of C, C=28. Assume the firms compete a la ackelberg. Firm 1 is the leader and Firm 2 is the follower in this market. a) What is the follower's total revenue function? b) Determine the equilibrium output level for both the leader and the follower. c) Determine the equilibrium market price, the profits of the leader and the follower. te: The writing is clear and abbreviations are not allowed.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.4P

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