Use the Following to Answer Question

question 77

Multiple Choice

Use the following to answer question:
Figure 11.4
-(Figure 11.4) In a Cournot market with two firms, the inverse market demand curve is P = 20 - 0.5Q, where Q = q₁ + q₂. (Firm 1's output = q₁; Firm 2's output = q₂.) If Firm 2 produces 20 units of output, Firm 1's residual marginal revenue curve is depicted in:

• A) panel a.
• B) panel b.
• C) panel c.
• D) panel d.