Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost

question 119

Multiple Choice

Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Each firm will produce

• A) a/b.
• B) a/2b.
• C) a/3b.
• D) a/4b.

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Definitions:

Pathogens

Microorganisms or agents, such as bacteria, viruses, fungi, or parasites, that cause disease.

Sympathetic Nervous System

The branch of the autonomic nervous system that is most active during processes that spend body energy from stored reserves, such as in a fight-or-flight reaction to a predator or when you are anxious about a big test.

Adrenal Medulla

The inner part of the adrenal gland that produces adrenaline and noradrenaline, hormones involved in the body's fight-or-flight response.

Parasympathetic Nervous System

The branch of the autonomic nervous system that is most active during processes that restore reserves of energy to the body, such as relaxing and eating.