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The automobile market has been used as an example of a Stackelberg oligopoly where one firm is the industry leader and the other firms will follow that lead. Assume the following equations were estimated for the automobile industry:
P=1000-(Q1+ Q2)
Ci=4Qi
Where Q2 represents the total output of all the followers in the industry.
Calculate the profit-maximizing output for the industry leader, Q1.
Calculate the profit-maximizing output tor the industry followers, Q2.
Calculate the profits for the leader.
Calculate the profits for the followers.
The automobile market has been used as an example of a Stackelberg oligopoly where one firm is the industry leader and the other firms will follow that lead. Assume the following equations were estimated for the automobile industry:
P=1000-(Q1+ Q2)
Ci=4Qi
Where Q2 represents the total output of all the followers in the industry.
Calculate the profit-maximizing output for the industry leader, Q1.
Calculate the profit-maximizing output tor the industry followers, Q2.
Calculate the profits for the leader.
Calculate the profits for the followers.
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Insha FatimaLv10
28 Sep 2019