Firm a Has a Higher Marginal Cost Than Firm B

question 63

Multiple Choice

Firm A has a higher marginal cost than firm B. They compete in a homogeneous product Cournot duopoly. Which of the following results will NOT occur?

• A) Q_A < Q_B
• B) Profit_A < Profit_B
• C) Revenue of firm A < Revenue of firm B
• D) Price_A < Price_B

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Resistance-Level

A price level at which a stock or market consistently fails to rise above, often signaling a possible sell-off.

Stock Price

The current price at which a specific stock is traded on the stock market.

Confidence Index

An indicator that measures the confidence or optimism that investors feel about the overall financial market or the economy.