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Consider the following information: Inverse market demand: P = 12 - 0.5( q 1 + q 2 ), where q 1 and q 2 are

Consider the following information:

Inverse market demand:P= 12 - 0.5(q1+q2), whereq1andq2are Firm 1's and Firm 2's output

Firm 1's reaction function:q1= 9 - 0.5q2

Firm 2's reaction function:q2= 9 - 0.5q1

The marginal cost of production for both firms is constant at $3. The equilibrium prices in Cournot and Stackelberg competition are _____ and _____, respectively.

$6; $5.25

$9; $10

$4; $3.50

$8; $7

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