Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost

question 119

Multiple Choice

Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Each firm will produce

• A) a/b.
• B) a/2b.
• C) a/3b.
• D) a/4b.

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Definitions:

Peremptory Challenges

The right in jury selection for the attorneys to reject a certain number of potential jurors without stating a reason.

Demand Characteristics

Implicit cues from an experimental environment that influence participants' behaviors or responses.

Confounds

Variables that the researcher failed to control or eliminate, which can cause a false association between the studied variables.

Confirmation Biases

The tendency to search for, interpret, favor, and recall information in a way that confirms preexisting beliefs or hypotheses.