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(Solved): 2. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) ...



2. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) \( q_{a}+q_{b} . M C_{a}=M

2. Consider a market with two identical firms. The market demand is \( P=26-2 Q \), where \( Q= \) \( q_{a}+q_{b} . M C_{a}=M C_{b}=A C_{a}=A C_{b}=2 \). Now assume this market has a Stackelberg leader, Firm A. Solve for the quantity, price, and profit for each firm.


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Solutions: If firm 1 is leader then substituting
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