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The inverse demand for a homogeneous product Stackelberg duopoly is P = 20,000 - 5Q. the cost structures for the leader and the follower, respectively, are CL (QL) = 3,000QL and Cf (Qf) = 4,000Qf.
a. Determine the equilibrium market price
b. Dtermine the profits of the leader and the follower
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