Suppose Duopolists Face the Market Inverse Demand Curve P =

question 2

Multiple Choice

Suppose duopolists face the market inverse demand curve P = 100 - Q,Q = q₁ + q₂,and both firms have a constant marginal cost of 10.If firm 1 is a Stackelberg leader and firm 2's best response function is q₂ = (100 - q₁) /2,at the Nash-Stackelberg equilibrium firm 2's output is

• A) 30.
• B) 40.
• C) 60.
• D) 70.

---

Definitions:

Heavy

Having a great weight or being of high density.

Sturdy

Describes an object or structure that is strongly and solidly built.

Filing Systems

Organized methods for storing and retrieving documents or digital information efficiently.

Alphabetical

Pertaining to or based on the sequence of the letters in the alphabet.