Suppose duopolists face the market inverse demand curve P = 100 – Q, Q = q1 + q2, and both firms have a constant marginal cost of 10 and no

Suppose duopolists face the market inverse demand curve P = 100 – Q, Q = q1 + q2, and both firms have a constant marginal cost of 10 and no fixed costs. If firm 1 is a Stackelberg leader and firm 2’s best response function is , at the Nash-Stackelberg equilibrium firm 2’s profit is
A)400.
B)650.
C)800.
D)1200.

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