Suppose Cournot Duopolist Firms Operate with Each Having a Cost

question 74

Multiple Choice

Suppose Cournot duopolist firms operate with each having a cost of 30q_i (i = 1,2) so that each firm's marginal cost is 30.The inverse market demand curve is P = 120 - Q where Q = q₁ + q₂.Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits.At the Nash-Cournot equilibrium,the total output,Q,is

• A) 30.
• B) 45.
• C) 60.
• D) 90.

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Definitions:

Taste

The sensation produced when a substance in the mouth reacts chemically with taste receptor cells located on taste buds.

Innate Involuntary Behavior

Actions or responses that are not learned and occur automatically without conscious control.

Voluntary Behavior

Refers to actions that are performed consciously and with intention by an individual.

Survival

The act of continuing to live or exist, often despite hardship or danger.