Question: Consider a Stackelberg duopoly with the following inverse demand function: P = 1 0 0 2 Q 1 2 Q 2 . The firms' marginal

Consider a Stackelberg duopoly with the following inverse demand function: P =1002Q12Q2. The firms' marginal costs are identical and are given by MCi=2. Based on this information, the Stackelberg leader's reaction function is
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Q1=24.50.5Q2.
Q1=500.5Q2.
Q1=490.5Q2.
none of the provided answers.

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