Suppose in a Cournot Duopoly That Two Firms, Firm 1 $P = 50 -$

question 46

Multiple Choice

Suppose in a Cournot duopoly that two firms, Firm 1 and Firm 2, face market demand $P = 50 -$ $Q$ and both have marginal cost, $M C = \$ 20$ . The equilibrium price in this market will be:

• A) \(P = 10\)
• B) \(P = 20\)
• C) \(P = 30\)
• D) \(P = 40\)

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