Suppose Cournot Duopolist Firms Operate with Each Having a Cost

question 68

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 price,P,is

• A) 30.
• B) 45.
• C) 60.
• D) 90.

---

Definitions:

Bleuler

A Swiss psychiatrist known for his work in the early 20th century, notably for coining the term "schizophrenia."

Schizophrenia

A severe mental disorder characterized by disturbances in thought, perception, and behavior, leading to a disconnect from reality.

Delusions of Grandeur

A belief in one's exaggerated sense of importance, power, knowledge, or identity, often found in manic or psychotic conditions.

Visual Hallucinations

Experiences in which someone sees something that does not exist outside their mind, often associated with psychiatric or neurological conditions.