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Consider a Stackelberg Duopoly with the Following Inverse Demand Function

Question 45

Multiple Choice

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 - 2Q1 - 2Q2.The firms' marginal cost are identical and given by MCi(Qi) = 2Qi.Based on this information the consumer surplus in this market is


A) $36.75.
B) $73.50.
C) $1,352.40.
D) $2,704.80.

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