Two Firms Compete as a Stackelberg Duopoly

question 5

Multiple Choice

Two firms compete as a Stackelberg duopoly.The demand they face is P = 24 − Q.The cost function for each firm is C(Q) = 4Q.The profits of the two firms are:

• A)  _L = $100;  _F = $50.
• B)  _L = $50;  _F = $25.
• C)  _L = $25;  _F = $12.5.
• D)  _L = $20;  _F = $10.

---

Definitions:

Approach-avoidance Conflict

A psychological struggle or dilemma when a goal has both attractive and unattractive aspects, leading to ambivalence.

Approach-approach Conflict

A situation in psychology where an individual must choose between two equally appealing options, causing conflict due to the difficulty in making a decision.

Double approach-avoidance Conflict

A decision-making conflict involving two options, each with both appealing and negative aspects, leading to ambivalence.

Avoidance-avoidance Conflict

A psychological conflict that arises when an individual must choose between two negative or undesirable options.