There are two firms in an industry. The industry demand is given by P = 84...

There are two firms in an industry. The industry demand is given by P = 84 - Q, where Q is the total output of the two firms. The follower has a marginal cost of $0, and the leader has a marginal cost of $21. What are the equilibrium prices and outputs of the two firms under

a) Perfect competition;

b) Bertrand duopoly;

c) Cournot duopoly;

d) Stackelberg duopoly?

Expert Solution

Rahul Sunny answered 8 months ago

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