An Industry Has Two Firms

question 4

Multiple Choice

An industry has two firms. The inverse demand function for this industry is p = 74 - 4q. Both firms produce at a constant unit cost of $26 per unit. What is the Cournot equilibrium price for this industry?

• A) $21
• B) $29
• C) $42
• D) $26
• E) None of the above.

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Definitions:

Titles

Formal or official designations given to individuals, works of art, or positions to denote status or function.

Documentation

The written or printed material that provides official information or evidence or that serves as a record.

Visual

Pertaining to sight or the ability to see, often used in the context of graphical or pictorial representation of information or concepts.

Verifying Quality

The process of checking and ensuring that a product, service, or system meets specified standards or requirements.