Two Identical Firms Compete as a Cournot Duopoly

question 59

Multiple Choice

Two identical firms compete as a Cournot duopoly.The inverse market demand they face is P = 80 − 4Q.The cost function for each firm is C(Q) = 8Q.The price charged in this market will be:

• A) $12.
• B) $32.
• C) $48.
• D) $56.

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Waste Disposal Company

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