Question: Consider a Cournot duopoly with the following inverse demand function: P = 2 0 0 - 2 Q 1 - 2 Q 2 . The

Consider a Cournot duopoly with the following inverse demand function: P=200-2Q1-2Q2. The firms' marginal costs are identical and are given by MC1(Qi)=4Qi. Based on this information, firm 1 and 2's reaction functions are
A)r1(Q2)=49-0.5Q2 and r2(Q1)=49-0.5Q1.
B)r1(Q2)=98-0.5Q2 and r2(Q1)=98-0.5Q1.
C)r1(Q2)=98-0.25Q2 and r2(Q1)=98-0.25Q1.
D)r1(Q2)=49-0.5Q1 and r2(Q1)=49-0.5Q2.
Consider a Stackelberg duopoly with the following inverse demand function: P=400-2Q1-2Q2. The firms' marginal costs are identical and are given by MC=4. Based on this information, the Stackelberg follower's reaction function is
A)Q2=99-0.5Q1.
B)Q2=198-0.5Q2.
C)Q2=99-0.5Q2.
D)Q2=198-0.5Q1.
Consider a Cournot duopoly with the following

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