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Two Firms Compete as a Stackelberg Duopoly

Question 60

Multiple Choice

Two firms compete as a Stackelberg duopoly.The demand they face is P = 100 − 3Q.The cost function for each firm is C(Q) = 4Q.The profits of the two firms are:


A) L = $384; F = $192.
B) L = $192; F = $91.
C) L = $56; F = −$28.
D) L = $56; F = $28.

Correct Answer:

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