Suppose Cournot Duopolist Firms Operate with Each Having a Cost

question 74

Multiple Choice

Suppose Cournot duopolist firms operate with each having a cost of 30q_i (i = 1,2) so that each firm's marginal cost is 30.The inverse market demand curve is P = 120 - Q where Q = q₁ + q₂.Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits.At the Nash-Cournot equilibrium,the total output,Q,is

• A) 30.
• B) 45.
• C) 60.
• D) 90.

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Definitions:

Two-Factor Theory

A psychological theory proposing that emotions are composed of two factors: physiological arousal and cognitive interpretation.

Physical Arousal

The bodily response to stimuli, characterized by increased physiological activity, including heart rate, blood pressure, and energy levels.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by triggering the "fight or flight" response.

Salivation

The involuntary production of saliva in the mouth, which can be stimulated by the anticipation of food or the presence of something to chew.