Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = ciQi. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QF) = 100 ? QF - 0.5cF.
B. MR(QL) = 50 ? 2QL - 0.5cF.
C. MR(QL) = 50 ? 2QL - 0.5cL.
D. MR(QF) = 100 ? 2QF - 0.5cF.
Answer: B
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