Duopolists a and B Face the Following Demand Curves: Q_A

question 22

Multiple Choice

Duopolists A and B face the following demand curves: Q_A = 120 - 2P_A + P_B and Q_B = 120 - 2P_B + P_A.If both firms have zero marginal cost and they form a cartel,what is the profit-maximizing price and quantity?

• A) P = 30, Q = 180.
• B) P = 40, Q = 160.
• C) P = 60, Q = 120.
• D) P = 80, Q = 80.
• E) P = 75, Q = 90.

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Defensiveness

A psychological reaction that occurs when an individual feels threatened or challenged, leading to behaviors that protect their self-esteem or justify actions.

Reduce

To decrease in size, amount, extent, or number.

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The ability to handle social interactions and relationships effectively, including understanding social cues and responding appropriately.

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A strong emotional response to perceived provocation, frustration, or injustice, often characterized by feelings of annoyance, displeasure, or hostility.