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.