Consider a Cournot duopoly with the following inverse demand function: P = 200 2Q1 2Q2. The firms' marginal costs are identical and are given by MC_i(Q_i) = 12Qi. Based on this information, firm 1 and 2's reaction functions are

Multiple Choice:

r₁(Q₂) = 188 0.5Q2 and r₂(Q₁) = 188 0.5Q1.

r₁(Q₂) = 94 0.5Q1 and r₂(Q₁) = 94 0.5Q2.

r₁(Q₂) = 47 0.5Q2 and r₂(Q₁) = 47 0.5Q1.

r₁(Q₂) = 94 0.25Q2 and r₂(Q₁) = 94 0.25Q1.