A Duopoly Faces the Inverse Demand Curve P = 160

question 36

Multiple Choice

A duopoly faces the inverse demand curve p = 160 - 2q.Both firms in the industry have constant costs of $10 per unit of output.In a Cournot equilibrium how much output will each duopolist sell?

• A)75
• B)54
• C)25
• D)35
• E)48

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