The inverse market demand curve for bean sprouts is given by: P(Y) = 100-2Y, The total cost function for any firm in the industry is given by TC(y) = 4y. Suppose firm 1 acts as a Stackleberg leader and firm 2 behaves as a follower. How many units of output will firm 1 produce? Question 6 options:   a) 24   b) 16   c) 12   d) 48

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The inverse market demand curve for bean sprouts is given by:

P(Y) = 100-2Y,

The total cost function for any firm in the industry is given by TC(y) = 4y.

Suppose firm 1 acts as a Stackleberg leader and firm 2 behaves as a follower.

How many units of output will firm 1 produce?

Question 6 options:

 

a) 24

 

b) 16

 

c) 12

 

d) 48

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