Question: 10) 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

 10) Suppose two duopolists operate at zero marginal cost. The market

demand is p=a-bQ. If firm 1 is the Stackelberg leader, what level

10) 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/b B. q1=a/2b C. q1=(a-2bq2)/2b D. q1=(a-bq2)/2b

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