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.

---

Definitions:

White Space

The unmarked sections of a page or screen, which help to separate text or visual elements and improve readability or design.

Broad Margins

Refers to the wide, empty spaces surrounding the text on a page, which can affect readability and design aesthetics.

Good Design

Characteristics of a product or solution that make it effective, efficient, and attractive to its users.

Headings

Titles or labels used in documents or webpages to organize content and help readers navigate through information.