Figure 13-1 Shows the Stackelberg Model of a Duopoly

question 60

Multiple Choice

Figure 13-1 shows the Stackelberg model of a duopoly.Both firms face constant marginal costs equal to OJ and the market demand curve is AD.The Stackelberg firm produces an output of OF and OF is equal to FL.
-Refer to Figure 13-1.In the Stackelberg equilibrium,the total industry output is _____.

• A)OF
• B)OK
• C)OE
• D)OL