Consider a Stackelberg Duopoly with the Following Inverse Demand Function

Consider a Stackelberg duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information the Stackelberg leader's marginal revenue function is

A) MR(Q_L) = 50 - 2Q_L + c₁.
B) MR(Q_L) = 50 - 2Q_L + c₂.
C) MR(Q_F) = 100 - 2Q_F + c₁.
D) MR(Q_F) = 100 - Q_F + c₂.

Correct Answer:

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