Consider a Stackelberg Duopoly with the Following Inverse Demand Function

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 MC_i(Q_i) = c_iQ_i. Based on this information, the Stackelberg leader's marginal revenue function is:

A) MR(Q_L) = 50 - 2Q_L - 0.5c_L.
B) MR(Q_L) = 50 - 2Q_L - 0.5c_F.
C) MR(Q_F) = 100 - 2Q_F - 0.5c_F.
D) MR(Q_F) = 100 - Q_F - 0.5c_F.