Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost

question 58

Multiple Choice

Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is

• A)q1 = (a - bq2)/2b.
• B)q1 = (a - 2bq2)/2b.
• C)q1 = a/b.
• D)q1 = a/2b.

---

Definitions:

Neuroimaging

The use of various techniques to directly or indirectly image the structure, function/pharmacology of the nervous system.

Frontal Lobe

A region of the brain located at the front part that is responsible for voluntary movement, expressive language, and managing higher-level executive functions.

Bipolar Disorder

A mental disorder characterized by extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Mood Stabilizers

Mood stabilizers are a class of medication primarily used to treat mood disorders such as bipolar disorder, helping to prevent the swings between mania and depression by balancing mood extremes.