The market for knitted scarves at a local, weekend farmers' market is a Stackelberg duopoly. Sammy's Scarves acts as the Stackelberg leader and Knitting Nancy as the Stackelberg follower. Both Sammy and Nancy know that the market demand for knitted scarves atthe farmers' market is:Q=320-4Pwhere Q is the quantity of knitted scarves demanded and P is the price of a knitted scarf. Solving the market demand for P as a function of Q gives the inverse market demand:P-80-0.25Q.Sammy produces qs knitted scarves, and Nancy produces q knitted scarves. Each incurs a total cost of producing q; knitted scarves ofTC (91)==30+20qSammy will sell 140 knitted scarves and Nancy will sell 70 knitted scarves at the local, weekend farmers' market.

References; Fiez, T., Chasnov, B., & Ratliff, L. J. (2019). Convergence of learning dynamics in…

Answered: The market for knitted scarves at a…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 19SQ

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E1
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Do not use Ai
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