A duopoly faces the inverse demand p= 110 -0. Both firms in the industry have constant costs of $10 per unit of output.

A duopoly faces the inverse demand p= 110 -0.5×q

.

Both firms in the industry have constant costs of $10 per unit of output.

If the industry consists of Stackelberg Leader (Firm 1) and Stackelberg Follower(Firm 2), then, in equilibrium, the amount produced by Firm 2 (Follower) is

a.

15 units

b.

20 units

c.

30 units

d.

40 units

e.

50 unit