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:

Passive-Aggressive Behavior

A pattern of indirectly expressing negative feelings instead of openly addressing them.

Primary Emotions

Fundamental feelings inherent in humans, such as joy, sadness, anger, and fear, that are immediate responses to stimuli.

Stress Response

The body's way of reacting to a challenge or demand, involving various physical and psychological responses.

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for physical activity by accelerating the heart rate, constricting blood vessels, and raising blood pressure, among other things.