Use the Following Figure to Answer the Question : Figure

Multiple Choice

Use the following figure to answer the question : Figure 13-1 : shows the Stackelberg model of a duopoly.Both firms face constant marginal costs equal to OJ and the market demand curve is AD.The Stackelberg firm produces an output of OF and OF is equal to FL.
-Refer to Figure 13-1.The difference between the total industry output produced under a perfect competition model and a Stackelberg model is represented by the distance _____.

A) KF
B) KL
C) LE
D) FL