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The inverse market demand in a homogeneous product Stackelberg duopoly is
P= $176-12*(Q1+Q2) and
Cost are
C1(Q1)=$38*Q1
C2(Q2)=$20*Q2
Determine the reaction function for the firm 2 follower
Calculate each firm equilibrium output
Firm 1
Firm 2
Calculate the equilibrium market price
Calculate the profit each firm earn in equilibrium
Suppose the Fed decided to purchase $50 billion worth of government securities in the open market. What impact would this action have on the economy? Specifically, answer the following questions:
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Suppose that the market for wheat is characterized by the following demand and supply relationships.
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