Consider the Following Information

Multiple Choice

Consider the following information:
Inverse market demand: P = 12 - 0.5(q₁ + q₂) , where q₁ and q₂ are Firm 1 and Firm 2's output
Firm 1's reaction function: q₁ = 9 - 0.5q₂
Firm 2's reaction function: q₂ = 9 - 0.5q₁
The marginal cost of production for both firms is constant at $3. The equilibrium prices in Cournot and Stackelberg competition are _____ and _____, respectively.

A) $8; $7
B) $9; $10
C) $4; $3.50
D) $6; $5.25