Suppose duopolists face the market inverse demand curve P = 100 - Q, Q = q
1 + q
2, 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
◦ 1200.
◦ 400.
◦ 650.
◦ 800.