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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Definitions:

Fascism

A far-right, authoritarian ultranationalist political ideology and movement, characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy.

Price Mechanism

The way in which prices rise and fall as a result of changes in supply and demand, allocating resources through the economy.

Equitable Distribution

The fair and just distribution of economic benefits across a society, aiming for a balanced allocation of wealth and opportunities.

Efficient Allocation

The process by which resources are optimally distributed to meet the needs and maximize the welfare of the economy or market.