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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) QL = 2QF.
C) PL > PF.
D) Profits of leader > Profits of follower and QL = 2QF.

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