Consider a Stackelberg Duopoly with the Following Inverse Demand Function

question 72

Multiple Choice

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information the Stackelberg follower's marginal revenue function is

• A)MR_F(Q_L,Q_F) = 100 - 2Q_L - 4Q_F.
• B)MR_F(Q_L,Q_F) = 100 - 4Q_L - 2Q_F.
• C)MR_F(Q_L,Q_F) = 100 - 2Q_L - Q_F.
• D)MR_F(Q_L,Q_F) = 100 - Q_L - 2Q_F.

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