The Market Inverse Demand Curve Is P = 90 -

Multiple Choice

The market inverse demand curve is P = 90 - Q, where Q is the total market output consisting of Firm 1's output, q₁, and Firm 2's output, q₂. Both firms have a constant marginal cost of $10. If Firm 1 selects its output level first, how much output does each firm produce?

A) q₁ = 40; q₂ = 20
B) q₁ = 30; q₂ = 15
C) q₁ = 18; q₂ = 18
D) q₁ = 28; q₂ = 14