Hello,

Would you please explain algebra to derive answer 28?

Thanks,

The correct answer is shown. The inverse demand function for two firms in a homogeneous-product, Stackelberg oligopoly is P = 60 - (Q + 02) and costs for the two firms are CI(QI) = 401 AND, C2(Q2) = 402. Under these conditions, the leader's output equals 28.