The market demand curve for a pair of duopolists is given as P = 21 − 2Q, where Q = Q1 + Q2. The constant per unit marginal cost is $9 for each duopolist. Find the equilibrium price, total quantity and profit for each firm, assuming the firms act as a Stackelberg leader and follower, with firm 1 as the leader.

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter8: Monopoly
Section: Chapter Questions
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The market demand curve for a pair of duopolists is given as P = 21 − 2Q, where Q = Q1 + Q2. The constant per unit marginal cost is $9 for each duopolist. Find the equilibrium price, total quantity and profit for each firm, assuming the firms act as a Stackelberg leader and follower, with firm 1 as the leader.

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