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:

Fundamental Attribution Error

The tendency to make attributions to internal causes when focusing on someone else’s behavior.

Behavior

The action or reaction of an entity (usually a person), in response to external or internal stimuli.

Social Perception

The process by which individuals form impressions and make inferences about other people and social situations based on observable cues and contextual information.

Pygmalion Effect

A psychological phenomenon in which higher expectations lead to an increase in performance.