Suppose Cournot Duopolists Firms Face the Same Market Demand Curve,but

question 20

Multiple Choice

Suppose Cournot duopolists firms face the same market demand curve,but have differing costs.At the Nash-Cournot equilibrium,the firm with the higher cost will

• A) have a lower price for its product than its competitor.
• B) have a smaller profit than its competitor.
• C) have a higher price for its product than its competitor.
• D) have a higher profit than its competitor.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital, in the production process, critical for decision-making in resource allocation.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor input, considering other factors constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Wage Rate

The fixed amount of compensation paid to an employee for performed labor, typically expressed per hour or unit of work.