Consider a Cournot Duopoly with the Following Inverse Demand Function

question 116

Multiple Choice

Consider a Cournot duopoly with the following inverse demand function: P = 100 − 2Q₁ − 2Q₂.The firms' marginal costs are identical and are given by MC_i = 2.Based on this information,consumer surplus in this market is:

• A) $16.33.
• B) $32.67.
• C) $1,067.11.
• D) $2,134.22.

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