Consider a Market Consisting of Two Firms Where the Inverse

question 23

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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