Suppose two duopolists operate at zero marginal cost. The market demand is p = a - bQ. If firm 1 is the Stackelberg leader, what level of output will it choose?
A) q1 = (a - bq2 )/2b
B) q1 = (a - 2bq2 )/2b
C) q1 = a/b
D) q1 = a/2b
D
Economics
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Rent controls mean that tenants end up with the best possible housing choices over the long run
a. True b. False
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If the price of a Domino's pizza decreases while the price of a Pizza Hut pizza is unchanged, then probably the demand for Pizza Hut pizza:
A. increases as some people switch from Pizza Hut to Domino's. B. decreases as some people switch from Pizza Hut to Domino's. C. remains unchanged. D. will depend on what happens to the supply of Pizza Hut pizza.
Economics