Find the subgame perfect nash equilibrium in the game

Reference no: EM13223154

Consider the following version of the Stackelberg model. There are two firms, 1 and 2. 1 is the leader and chooses its quantity first. 2 is the follower and chooses its output after 1 chooses. They produce identical goods and so if q1 = is 1's output and q2 = 2's output then market output is q1 + q2. Each produces output at a constant average and marginal cost of 30. The market demand curve is p = 150 (q1 + q2).

Find the subgame perfect Nash equilibrium in the game.

Reference no: EM13223154

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