Consider the market for vegan soup. Two firms, Kibble and Flesh Not, are in Stackelberg competition. Flesh Not observes Kibble's output level before choosing its desired output level. The market inverse demand curve for vegan soup is P = 18 - Q, where Q measures cups of soup produced by Kibble and Flesh Not, q_K and q_F, and P is the price per cup. Kibble and Flesh Not produce soup at a constant marginal cost of $2.

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The Answer of Consider the market for vegan soup. Two firms, Kibble and Flesh Not, are in Stackelberg competition. Flesh Not observes Kibble's output level before choosing its desired output level. The market inverse demand curve for vegan soup is P = 18 - Q, where Q measures cups of soup produced by Kibble and Flesh Not, q_K and q_F, and P is the price per cup. Kibble and Flesh Not produce soup at a constant marginal cost of $2.

Consider the Market for Vegan Soup