Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost

question 58

Multiple Choice

Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Firm 1's best-response function is

• A) q₁ = (a - bq₂)/2b.
• B) q₁ = (a - 2bq₂)/2b.
• C) q₁ = a/b.
• D) q₁ = a/2b.

---

Definitions:

Saint Michael

In Christian tradition, an archangel known for his role as a protector and a leader of the army of God against the forces of evil.

Persecution

The act of harassing or oppressing a person or group, especially because of their identity, beliefs, or practices.

Derailment

A common thinking disturbance in schizophrenia, involving rapid shifts from one topic of conversation to another. Also called loose associations.

Insects

Small arthropod animals that have a segmented body, six legs, and generally one or two pairs of wings.