Cournot Duopolists Face a Market Demand Curve Given by P

question 17

Multiple Choice

Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. If the duopolists behave as a shared monopoly, the equilibrium price and total quantity of output will be

• A)Q = 30, P = 60.
• B)Q = 60, P = 30.
• C)Q = 40, P = 50.
• D)Q = 45, P = 45.