Consider a Stackelberg Duopoly with the Following Inverse Demand Function

question 45

Multiple Choice

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 − 2Q₁ − 2Q₂.The firms' marginal costs are identical and are given by MC_i = 2.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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