An Industry Has Two Firms

question 11

Multiple Choice

An industry has two firms.The inverse demand function for this industry is p = 263 - 6q.Both firms produce at a constant unit cost of $29 per unit.What is the Cournot equilibrium price for this industry?

• A)$29
• B)$31
• C)$107
• D)$53.50
• E)None of the above.

---

Definitions:

Weekly Pay

Compensation or salary distributed on a weekly basis to employees or workers.

Higher Intelligence

Exceptional mental capability, involving superior problem-solving abilities, creativity, and learning aptitude.

Mental Activity

Any cognitive process that involves thinking, reasoning, learning, and memory.

Operant Behavior

Behavior that is controlled by its consequences, including rewards and punishments, as defined in the theory of operant conditioning.