Consider a Stackelberg game of quantity competition between two firms. Firm 1 is the leader and firm 2 is the follower. Market demand is described by the inverse demand function P=1000-4Q. Each firm has a constant unit cost of production equal to 20.

Suppose firm 2's unit cost of production is c<20. What would c have to be so that in the Nash equilibrium the two firms,leaderand follower, had the same market share?

a. 0

b. Impossible, as it would have to be negative.

c. 16

d. 10