An Industry Has Two Firms

question 7

Multiple Choice

An industry has two firms.The inverse demand function for this industry is p = 74 - 4q.Both firms produce at a constant unit cost of $26 per unit.What is the Cournot equilibrium price for this industry?

• A)$21
• B)$29
• C)$42
• D)$26
• E)None of the above.

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Definitions:

Pseudoscience

A claim, argument, or method that is presented as if it were scientific, but is not.

Prokaryotes

Unicellular organisms that lack a membrane-bound nucleus and other organelles, including bacteria and archaea.

Nuclei

The membrane-bound organelles found in eukaryotic cells that contain genetic material and act as the control center for cell function and regulation.

Multicellular

Organisms composed of multiple cells that perform specialized functions, in contrast to single-celled organisms.