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Answer to Question #320801 in Economics of Enterprise for Femi
Question #320801
The market demand curve p=30-Q there are only two firms in the market each with marginal cost of $0 what is market price in the stackelberg model
Expert's answer
TR= P.Q
= (30- Q)Q
= 30Q- Q
MR= 30- 2Q
At Equilibrium,
MR= MC
30- 2Q= 0
Q= 15
P= 30- 15
= 15
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