Two firms compete as a Stackelberg duopoly. The inverse market demand they face is P = 62 ? 4.5Q. The cost function for each firm is C(Q) = 8Q. The outputs of the two firms are:
A. QL = 35; QF = 6.
B. QL = 6; QF = 3.
C. QL = 48; QF = 24.
D. None of the answers is correct.
Answer: B
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