題組內容

Question 3
Consider a duopoly market. Firm's cost is C(q_i)= 0.28qi；and Q(P)=1,000-1,000P. Answer the following questions.

(c) Suppose that firm 1 is a quantity setter and firm 2 is a quantity follower (Stackelberg competition). Calculate firm 1's output q₁= _ and profit π₁= _