Suppose That Firms $A$ And $B$ Are Cournot Duopolists in the Salt Industry

question 13

Multiple Choice

Suppose that firms $A$ and $B$ are Cournot duopolists in the salt industry. The market demand curve can be specified as $P = 200 - Q _ { A } - Q _ { B }$ . The marginal cost to each firm is $\$ 40$ . What is firm $B$ 's profit-maximizing quantity when firm A produces an arbitrary output $Q _ { A }$ ?

• A) \(Q _ { B } = 160 - Q _ { A }\).
• B) \(Q _ { B } = 160 - 2 Q _ { A }\).
• C) \(Q _ { B } = 80 - Q _ { A }\).
• D) \(Q _ { B } = 80 - \frac { 1 } { 2 } Q _ { A }\).

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Definitions:

Psychoanalytic Theory

A theory of personality development and therapeutic technique that emphasizes unconscious motivations and conflicts.

Behaviourism

A theory of learning which states that all behaviors are acquired through conditioning.

Unconscious Motives

Desires or drives that an individual is not aware of but that influence their behavior or emotional responses.

Sociohistorical Context

The combination of social and historical factors surrounding an event, individual, or movement, influencing its development and perception.