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.

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Definitions:

Comparison Groups

Groups used as a benchmark or standard of comparison to evaluate the outcomes or processes of a particular group, often in research or assessments.

Active Listening

A communication technique that involves giving full attention to the speaker, understanding their message, and responding thoughtfully.

Role Reversal

A situation in which individuals swap their roles or positions, often to gain a new perspective.

Single-issue Conflicts

Disagreements centered around a single topic, problem, or concern, making them potentially simpler to negotiate.