Suppose in a Cournot Duopoly That Two Firms, Firm 1 $P = 50 - Q$

question 20

Multiple Choice

Suppose in a Cournot duopoly that two firms, Firm 1 and Firm 2, face market demand $P = 50 - Q$ and both have marginal cost, $M C = \$ 20$ . Firm 1's reaction function can be written as

• A) \(Q _ { 1 } = 45 - 0.5 Q _ { 2 }\)
• B) \(Q _ { 1 } = 25 - 0.5 Q _ { 2 }\)
• C) \(Q _ { 1 } = 15 - 0.5 Q _ { 2 }\)
• D) \(Q _ { 1 } = 10 - 0.5 Q _ { 2 }\)

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