With a Linear Inverse Demand Function and the Same Constant

question 34

Multiple Choice

With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly,which of the following will result?

• A) Profits of leader > Profits of follower.
• B) Q_L = 2Q_F.
• C) P_L > P_F.
• D) Profits of leader > Profits of follower and Q_L = 2Q_F.