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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 costs are identical and are given by MCi = 2.Based on this information,the Stackelberg follower's marginal revenue function is:


A) MRF(QL,QF) = 100 − 2QL − 4QF.
B) MRF(QL,QF) = 100 − 4QL − 2QF.
C) MRF(QL,QF) = 100 − 2QL − QF.
D) MRF(QL,QF) = 100 − QL − 2QF.

Correct Answer:

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