Suppose the demand function is q 200 - 2p firm a the, Business Economics

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Suppose the demand function is q 200 - 2p firm a the

Suppose the demand function is Q = 200 - 2p. Firm A, the leader, acts before Firm B, the follower. Both firms have a constant marginal cost of 10. Draw a diagram with Firm A’s output on the horizontal axis. Show the best-response function of Firm B. On the diagram, identify the Nash-Cournot solution, the Stackelberg solution, and the cartel solution.

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