An Industry Has Two Firms Each of Which Produces Output

question 43

Multiple Choice

An industry has two firms each of which produces output at a constant unit cost of $10 per unit.The demand function for the industry is q = 1,000,000/p.The Cournot equilibrium price for this industry is

• A)$5.
• B)$10.
• C)$15.
• D)$20.
• E)$25.

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Definitions:

American Power

The influence and capability of the United States on a global scale, including military, economic, and cultural dimensions.

Eugenics

A controversial and discredited social philosophy advocating for the improvement of human genetic traits through selective breeding and other means, historically leading to unethical practices.

Anti-immigration

Opposition to immigration, often based on fears of economic competition, cultural difference, or security concerns, leading to policies or attitudes that restrict or discourage people from moving to a new country.

Race Betterment Foundation

An early 20th-century American eugenics-based organization aiming to promote racial purity and health through selective breeding and other means.