In Stackelberg competition, the market inverse demand curve is P = 20 - 2(q₁ + q₂), where q₁ and q₂ are Firm 1's and Firm 2's output measured in hundreds of units. Firm 1, the first-mover, has a marginal cost of $4, and Firm 2 has a marginal cost of $2. How much output does each firm produce?

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The Answer of In Stackelberg competition, the market inverse demand curve is P = 20 - 2(q₁ + q₂), where q₁ and q₂ are Firm 1's and Firm 2's output measured in hundreds of units. Firm 1, the first-mover, has a marginal cost of $4, and Firm 2 has a marginal cost of $2. How much output does each firm produce?

In Stackelberg Competition, the Market Inverse Demand Curve Is P