Duopolists a and B Face the Following Demand Curves: Q_A

question 21

Multiple Choice

Duopolists A and B face the following demand curves: Q_A = 100 - 2P_A + 5P_B and Q_B = 120 - 3P_B + 4P_A.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

• A) P_A = 300, Q_A = 600, P_B = 220, Q_B = 660.
• B) P_A = 200, Q_A = 400, P_B = 200, Q_B = 400.
• C) P_A = 200, Q_A = 700, P_B = 200, Q_B = 320.
• D) P_A = 300, Q_A = 750, P_B = 250, Q_B = 570.
• E) P_A = 300, Q_A = 1,250, P_B = 350, Q_B = 270.

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