A Duopoly Faces the Inverse Demand Curve P = 160

question 41

Multiple Choice

A duopoly faces the inverse demand curve p = 160 - 2q. Both firms in the industry have constant costs of $10 per unit of output. In a Cournot equilibrium how much output will each duopolist sell?

• A) 75
• B) 54
• C) 25
• D) 35
• E) 48

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