Stackelberg Leader-Follower Duopolists Face a Market Demand Curve Given by P

question 38

Multiple Choice

Stackelberg Leader-Follower duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. The equilibrium price and quantity for the total market will be

• A)Q = 30, P = 60.
• B)Q = 60, P = 30.
• C)Q = 40, P = 50.
• D)Q = 45, P = 45.

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Definitions:

Net Basis

Payment terms for goods or services that require payment in full, without any deductions or discounts, within a specified period.

Intentional Misstatement

Deliberate falsification or omission of information in financial records or statements.

Financial Reporting

The method by which declarations are created to reveal the financial condition of an organization to its managers, investors, and governmental bodies.

External Auditor

An independent third-party professional who examines the financial statements of a company to provide an opinion on their accuracy and compliance with accounting standards.