For a Market with a Linear Demand Curve and Constant

question 31

Multiple Choice

For a market with a linear demand curve and constant marginal cost of production, why are the reaction functions for the Cournot duopoly sellers also straight lines?

• A) The reaction functions do not have to be straight lines, and they are only drawn this way in the book to keep the figures simple.
• B) Cournot thought the lines would be straight, but this was proven wrong by other economists.
• C) Marginal revenue is always linear when marginal costs are constant.
• D) We know that the marginal revenue curves for linear demand curves are also straight lines.

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Definitions:

Protein Synthesis

The process by which cells build proteins, consisting of transcription in the nucleus and translation in the cytoplasm.

Cell Cycle

The series of events that take place in a cell leading to its growth, replication, and division into two daughter cells.

Cytosol

The aqueous component of the cytoplasm within a cell, where organelles are suspended and various cellular processes occur.

Cytoplasm

The material within a living cell, excluding the nucleus, made up of cytosol and organelles, where most cellular activities occur.