When Marginal Cost Is Constant and Zero, the Interdependence Between

question 33

Multiple Choice

When marginal cost is constant and zero, the interdependence between Cournot duopolists causes

• A)Price to be 1/3 higher and quantity to be 1/3 lower than the corresponding values in the monopoly case
• B)Price to be 1/3 lower and quantity to be 1/3 higher than the corresponding values in the monopoly case
• C)Prices and quantities to be the same as they would be in the monopoly case
• D)Prices and quantities to be the same as they would be in the perfectly competitive case

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Field Experiments

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