-The Above Figure Shows the Reaction Functions for Two Pizza

question 59

Multiple Choice

-The above figure shows the reaction functions for two pizza shops in a small isolated town. Firm B producing 100 pizzas and firm A producing 50 pizzas is NOT a Cournot equilibrium because

• A)Cournot duopolists agree to share the market equally.
• B)firm B is not on its best-response function.
• C)firm A is not on its best-response function.
• D)neither firm is on its best-response function.

---

Definitions:

Traditional Currency

Money that is issued by governments as legal tender, typically in the form of coins and paper bills, used as a medium of exchange for goods and services.

Volatile

Pertains to substances that easily vaporize at normal temperatures or data storage that lose its content when power is switched off, in computing contexts.

B2B

Business-to-Business, transactions or commercial activities conducted between companies, as opposed to between companies and consumers (B2C).

B2C

Business-to-Consumer, referring to the direct commercial transactions and relationships between businesses and end-users or consumers.