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) πL = $384; πF = $192.
B) πL = $192; πF = $91.
C) πL = $56; πF = -$28.
D) πL = $56; πF = $28.
Correct Answer:
Verified
Correct Answer:
Verified
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