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Consider a Stackelberg Duopoly with the Following Inverse Demand Function

Question 69

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 consumer surplus in this market is:


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

Correct Answer:

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