Suppose That Firms a and B Are Cournot Duopolists in the Salt

question 13

Multiple Choice

Suppose that firms A and B are Cournot duopolists in the salt industry. The market demand curve can be specified as $P = 200 - Q _ { A } - Q _ { B }$ . The marginal cost to each firm is $40. What is firm B's profit-maximizing quantity when firm A produces an arbitrary output $Q _ { A }$ ?

• A) \(Q _ { B } = 160 - Q _ { A }\) .
• B) \(Q _ { B } = 160 - 2 Q _ { A }\) _.
• C) \(Q _ { B } = 80 - Q _ { A }\) _.
• D) \(Q _ { B } = 80 - 1 / 2 Q _ { A }\) _.

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