An industry has two firms, a leader and a follower. The demand curve for the industry's output is given by p = 208 - 4q, where q is total industry output. Each firm has zero marginal cost. The leader chooses his quantity first, knowing that the follower will observe the leader's choice and choose his quantity to maximize profits, given the quantity produced by the leader. The leader will choose an output of

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The Answer of An industry has two firms, a leader and a follower. The demand curve for the industry's output is given by p = 208 - 4q, where q is total industry output. Each firm has zero marginal cost. The leader chooses his quantity first, knowing that the follower will observe the leader's choice and choose his quantity to maximize profits, given the quantity produced by the leader. The leader will choose an output of

An Industry Has Two Firms, a Leader and a Follower