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:

Using exchange rates, it is possible to price-compare in different nations. If an iPod costs $90 in the United States and €45 in France, in which nation would you get the better deal when the dollar-euro exchange rate is $2.50/€?

a. The iPod would be cheaper in France. b. The iPod would be cheaper in the United States. c. The iPod would cost the same in both countries. d. From the information provided, it is impossible to answer this question.

If average total cost is falling marginal cost must also be falling

Indicate whether the statement is true or false