Stackelberg Duopolists,Firm 1 and Firm 2,face Inverse Market Demand

question 43

Multiple Choice

Stackelberg duopolists,Firm 1 and Firm 2,face inverse market demand Both have marginal cost, Let firm 2,the follower,set its output according to the formula Which of the following outputs maximizes the leader's profit?

• A) Q₁ = 7.5
• B) Q₁ = 10
• C) Q₁ = 15
• D) Q₁ = 20

---

Definitions:

Multigenerational

Involving or affecting several generations of a family or species.

Sterile Workers

In social insects (like ants, bees, and termites), these are individuals that do not reproduce but work for the colony by performing tasks such as foraging, building, or defending.

Species

The fundamental category in taxonomy, referring to a group of closely related organisms that can interbreed and produce fertile offspring.

Honeybee

A flying insect known for its role in pollination and, in the case of the most well-known species, the European honey bee (Apis mellifera), for producing honey and beeswax.