Consider a Market Consisting of Two Firms Where the Inverse

question 79

Multiple Choice

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 - 2(Q₁ + Q₂) .If the Stackelberg leader's and follower's marginal costs are zero, the leader's marginal revenue is

• A)MR(Q_L, Q_F) = 125 - Q_L + 0.5Q_F.
• B) MR(Q_L) = 250 - 2Q_L.
• C)MR(Q_F) = 250 - 2Q_F.
• D)MR(Q_L, Q_F) = 125 - 0.5Q_L + Q_F.

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Definitions:

Listing Agreement

A contract between a property owner and a real estate agent, authorizing the agent to act on the owner’s behalf in the sale of the property.

Privity of Contract

A principle in contract law stating that only parties involved in the contract have the right to sue to enforce their rights or claim damages.

Commission

A fee paid for services, typically a percentage of the transaction value, to an agent or salesperson for facilitating or completing a sale.

Agreement of Purchase and Sale

A legally binding contract between a buyer and seller detailing the terms and conditions of the sale of property.