Stackelberg Duopolists, Firm 1 and Firm 2, Face Inverse Market $P = 50 - Q$

question 6

Multiple Choice

Stackelberg duopolists, Firm 1 and Firm 2, face inverse market demand $P = 50 - Q$ . Both have marginal cost, $M C = \$ 20$ . If the follower takes the leader's output as fixed at $Q _ { 1 }$ , what is the equation of its reaction function?

• A) \(30 - Q _ { 1 } = Q _ { 2 }\)
• B) \(15 - Q _ { 1 } = Q _ { 2 }\)
• C) \(15 - 2 Q _ { 1 } = Q _ { 2 }\)
• D) \(15 - Q _ { 1 } / 2 = Q _ { 2 }\)

Understand the differences between mediation and arbitration in dispute resolution.

Comprehend the legal requirements for notification and mediation in labor negotiations.

Recognize the significance of various picketing practices and their legal status.

Understand the concept of bargaining impasse and its consequences.

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Definitions:

Demand

The amount of a particular good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Midpoint Formula

A more precise way of calculating percentages using the value halfway between P1 and P2 for the base in calculating the percentage change in price and the value halfway between Q1 and Q2 as the base for calculating the percentage change in quantity demanded.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating how sensitive consumers are to price changes.

Hamburger

A popular fast food item consisting of a cooked patty of ground meat, typically beef, placed inside a sliced bun often accompanied with various condiments and toppings.