With a Linear Inverse Demand Function and the Same Constant

question 34

Multiple Choice

With a linear inverse demand function and the same constant marginal costs for both firms in a homogeneous product Stackelberg duopoly,which of the following will result?

• A) Profits of leader > Profits of follower.
• B) Q_L = 2Q_F.
• C) P_L > P_F.
• D) Profits of leader > Profits of follower and Q_L = 2Q_F.

---

Definitions:

Environment

The setting or situation in which a human, animal, or vegetation dwells or carries out their activities.

Placebo Effect

A positive outcome resulting from a placebo drug or treatment, not due to the placebo's actual characteristics, but instead stemming from the patient's faith in the treatment.

Transference Effect

A phenomenon in psychotherapy where a patient redirects feelings and desires, especially those unconsciously retained from childhood, onto the therapist.

Active Listening

The process of listening attentively while someone else speaks, paraphrasing and reflecting back what is said, and withholding judgment and advice.