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In: Economics

Two firms compete as a Stackelberg duopoly. The inverse market demand function they face is P...

Two firms compete as a Stackelberg duopoly. The inverse market demand function they face is P = 65 – 3Q. The cost function for each firm is C(Q) = 11Q. The outputs of the two firms are

QL = 9, QF = 4.5

QL = 9, QF = 10.5

QL = 6, QF = 3

QL = 4, QF = 2

Please help/ explain. Thank you

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Expert Solution

OPTION A IS CORRECT


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