An Industry Has Two Firms

question 13

Multiple Choice

An industry has two firms. The inverse demand function for this industry is p = 263 - 6q. Both firms produce at a constant unit cost of $29 per unit. What is the Cournot equilibrium price for this industry?

• A) $29
• B) $31
• C) $107
• D) $53.50
• E) None of the above.

---

Definitions:

Welfare Reform

Legislative changes intended to improve the efficiency and effectiveness of welfare systems, often by promoting work capability among beneficiaries and reducing dependency.

Personal Responsibility Act

A legislative measure aimed at encouraging individuals to take responsibility for their actions, often in the context of welfare reform or healthcare legislation.

Social Security

A government program that provides financial assistance to people with inadequate or no income, especially the elderly and disabled.

Progressive

Referring to the support for or advocacy of improvements or reform in societal practices, often with a focus on social justice, equality, and modernization.