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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Definitions:

Probability Model

A mathematical representation of a random phenomenon, characterized by its sample space, events within the sample space, and probabilities associated with each event.

Resonance Stabilization

A phenomenon where a molecule can be represented by two or more structures that contribute to its overall stability and properties, enhancing its chemical stability.

Phenoxide Ion

The phenoxide ion is a negatively charged ion (an anion) formed when phenol loses a hydrogen ion (H+), characterized by a phenyl group (C6H5) bound to an oxygen atom carrying a negative charge.

Cyclohexanol

A secondary alcohol with the formula C6H11OH, characterized by a six-member ring structure, and used as a precursor in the production of nylon.