Question: Consider a Stackelberg duopoly with the following inverse demand function: P = 800-4Q1-4Q2. The firms' marginal costs are identical and are given by MC =

Consider a Stackelberg duopoly with the following inverse demand function: P = 800-4Q1-4Q2. The firms' marginal costs are identical and are given by MC = 160. Based on this information, the Stackelberg follower's reaction function is Multiple Choice Q2 = 80 -0.5Q1. Q280-0.5Q2. Q2 = 40 -0.5Q1. Q2=40-0.5Q2.

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