Stackelberg duopoly
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 outputs of the two firms are:
a) QL = 16; QF = 8.
b) QL = 24; QF = 12.
c) QL = 12; QF = 8.
d) QL = 20; QF = 15.
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