The inverse demand curve for a Stackelberg duopoly is P = 10,000 - 6Q.The leader's cost structure is C_L(Q_L)= 15Q_L.The follower's cost structure is C_F(Q_F)= 25Q_F.
a.Determine the reaction function for the follower.
b.Determine the equilibrium output levels for both the leader and the follower.
c.What are the profits for the leader?
For the follower?

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The Answer of The inverse demand curve for a Stackelberg duopoly is P = 10,000 - 6Q.The leader's cost structure is C_L(Q_L)= 15Q_L.The follower's cost structure is C_F(Q_F)= 25Q_F. a.Determine the reaction function for the follower. b.Determine the equilibrium output levels for both the leader and the follower. c.What are the profits for the leader? For the follower?

The Inverse Demand Curve for a Stackelberg Duopoly Is P