Suppose That Firms a and B Are Cournot Duopolists in the Salt

question 9

Multiple Choice

Suppose that firms A and B are Cournot duopolists in the salt industry. The market demand curve can be specified $P = 200 - Q _ { A } - Q _ { B }$ The marginal cost to each firm is $40. Suppose that firm A is producing 100 units. What is firm B's profit-maximizing quantity?

• A)100.
• B)60.
• C)30.
• D)20.

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Definitions:

Conformists

Individuals or groups who adhere to accepted standards, norms, or practices of a society or organization, often to fit in or gain approval.

Moral Commitment

An ethical obligation or dedication to carry out actions that are considered right or beneficial to society.

Individualism

Term that entered the language in the 1820s to describe the increasing emphasis on the pursuit of personal advancement and private fulfillment free of outside interference.