Cournot Problem

question 10

Multiple Choice

Cournot Problem. Consider a Cournot oligopoly with two identical firms. These firms each have constant marginal costs of $10. The market for these firms’ product has demand Q = 100 - P.


-Refer to Cournot Problem.In the Nash Equilibrium,each firm will receive producer surplus of

• A) $300
• B) $450
• C) $600
• D) $900

---

Definitions:

Neurotransmitter

Chemical messengers that transmit signals across a chemical synapse, from one neuron to another, influencing various bodily functions.

Ion

An atom or molecule with a net electric charge due to the loss or gain of one or more electrons.

Antagonist

An opposing force, molecule, or character that interacts in a way to inhibit or counteract an action.

Action Potential

A temporary reversal of electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.