Consider a Stackelberg Duopoly with the Following Inverse Demand Function

question 69

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 consumer surplus in this market is:

• A) $36.75.
• B) $73.50.
• C) $1,352.40.
• D) $2,704.80.

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