In a Cournot Duopoly, a Residual Demand Curve

question 2

Multiple Choice

In a Cournot duopoly, a residual demand curve:

• A)is the same as a market demand curve.
• B)represents the demand curve that one firm faces given the output choice of the other firm.
• C)is the same as a marginal revenue curve when determining output in the Cournot model.
• D)is steeper than the market demand curve.

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