Suppose Duopolists Face the Market Inverse Demand Curve P =

question 2

Multiple Choice

Suppose duopolists face the market inverse demand curve P = 100 - Q,Q = q₁ + q₂,and both firms have a constant marginal cost of 10.If firm 1 is a Stackelberg leader and firm 2's best response function is q₂ = (100 - q₁) /2,at the Nash-Stackelberg equilibrium firm 2's output is

• A) 30.
• B) 40.
• C) 60.
• D) 70.

---

Definitions:

Corporate Officers

Individuals appointed to oversee the day-to-day operations and major corporate decisions, including CEOs, CFOs, and COOs.

Fiduciaries

Individuals or entities with a duty to act in the best interest of another party, often in a financial context.

Not Officers

Individuals or entities that do not hold an official position or authority within an organization.

Bad Business Decision

A judgment made in a business context that leads to outcomes failing to meet desired or expected objectives, often resulting in financial loss or missed opportunities.