Three firms, j = 1, 2, 3 compete in a market by choosing quantities
Three firms, j = 1, 2, 3 compete in a market by choosing quantities. Firm 1 is a dominant firm
and chooses quantities first while firm 2 and 3 choose quantities simultaneously but after firm
1 has chosen. Firms maximize profit and if firm j produces/offers quantity q it pays the cost
C(q) = cq. Products are homogeneous and demand is linear and given by the inverse function
P(q1, q2, q3) = 100
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