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Determine the equilibrium output levels


I have changed the values and require the model to plug my numbers in.

Please solve with explanations.

The inverse demand curve for a Stackelberg duopoly is

P = 5,000 - 3Q.

The leader's cost structure is

CL (QL) = 1250 + 10QL.

The follower's cost structure is

CF (QF) = 250 + 20QF.

Question 1: Determine the reaction function for the follower.

Question 2: Determine the equilibrium output levels for both the leader and the follower.

Question 3: What are the profits for the leader? For the follower?

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Macroeconomics: Determine the equilibrium output levels
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