Consider a Market Consisting of Two Firms Where the Inverse

Multiple Choice

Consider a market consisting of two firms where the inverse demand curve is given by P = 500 - 2(Q₁ + Q₂) .If the Stackelberg leader's and follower's marginal costs are zero, the leader's marginal revenue is

A) MR(Q_L, Q_F) = 125 - Q_L + 0.5Q_F.
B) MR(Q_L) = 250 - 2Q_L.
C) MR(Q_F) = 250 - 2Q_F.
D) MR(Q_L, Q_F) = 125 - 0.5Q_L + Q_F.