Two Identical Firms Compete as a Cournot Duopoly

question 59

Multiple Choice

Two identical firms compete as a Cournot duopoly.The inverse market demand they face is P = 80 − 4Q.The cost function for each firm is C(Q) = 8Q.The price charged in this market will be:

• A) $12.
• B) $32.
• C) $48.
• D) $56.

Comprehend the importance and components of a code of conduct in fostering ethical behavior.

Grasp the significance of corporate responsibility in balancing profit, consumer satisfaction, and societal well-being.

Recognize the legal frameworks, including Sarbanes-Oxley Act, aimed at combating unethical practices in corporations.

Understand the concept and implications of whistle-blowing in the business context.

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Definitions:

Deposit

Money placed into a financial institution for safekeeping, which can also earn interest depending on the type of account.

Semiannually Compounded Rate

An interest rate that is compounded twice a year, affecting the total amount of interest earned or paid.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the loan amount.

Bank

A financial institution licensed to receive deposits, make loans, and offer various financial services, such as currency exchange and wealth management.