Duopolists a and B Face the Following Demand Curves: Q_A

question 5

Multiple Choice

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

• A) P_A = 100, Q_A = 60, P_B = 80, Q_B = 140.
• B) P_A = 25, Q_A = 100, P_B = 25, Q_B = 100.
• C) P_A = 50, Q_A = 80, P_B = 40, Q_B = 120.
• D) P_A = 50, Q_A = 100, P_B = 50, Q_B = 100.
• E) P_A = 60, Q_A = 60, P_B = 40, Q_B = 140.

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Definitions:

Levels

The distinct values or stages that a variable can take on within a dataset, often referring to categorical variables.

F-Ratio

A statistic that measures the ratio of the variance among the means of groups to the variance within each group.

Main Effect

The overall impact of an independent variable on a dependent variable in an experiment, analyzing the significant changes or differences.

Factor B

A variable or element in an experiment or model that is manipulated to determine its effect on outcomes, often used in factorial designs.