Consider a Stackelberg duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information the Stackelberg follower's reaction function is A)Q_F = 24.5 - 0.25Q_L. B)Q_F = 49 - 0.25Q_F. C)Q_F = 24.5 - 0.5Q_L. D)Q_F = 24.5 - Q_L.

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The Answer of Consider a Stackelberg duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information the Stackelberg follower's reaction function is A)Q_F = 24.5 - 0.25Q_L. B)Q_F = 49 - 0.25Q_F. C)Q_F = 24.5 - 0.5Q_L. D)Q_F = 24.5 - Q_L.

Consider a Stackelberg Duopoly with the Following Inverse Demand Function