The inverse demand for a homogeneous-product stackelberg duopoly is p = 16,000 - 4q. the cost structures for the leader and the follower, respectively, are cl(ql) = 4,000ql and cf (qf) = 6,000qf..

a. what is the followers reaction function?

qf =

b. determine the equilibrium output level for both the leader and the follower.

leader output:

follower output:

c. determine the equilibrium market price.

$

d. determine the profits of the leader and the follower.

leader profits: $

follower profits: $

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%