An industry has two firms producing at a constant unit cost of $10 per unit. the inverse demand curve for the industry is p = 110 – 0.5q. suppose that firm 1 is a stackelberg leader in choosing its quantity (i. e., firm 1 chooses its quantity first, knowing that firm 2 will observe firm 1’s quantity when it chooses its own output.) how much output will firm 2, the follower, produce?

a. 40 units
b. 15 units
c. 20 units
d 50 units
e. 30 units

Bandar industries berhad of malaysia manufactures sporting equipment. one of the company’s products, a football helmet for the north american market, requires a special plastic. during the quarter ending june 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. 1. what is the standard quantity of kilograms of plastic (sq) that is allowed to make 35,000 helmets? 2. what is the standard materials cost allowed (sq x sp) to make 35,000 helmets? 3. what is the materials spending variance? 4. what is the materials price variance and the materials quantity variance?