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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Definitions:

Financial Institution

An organization that provides financial services, such as banks, insurance companies, and investment firms.

Suppliers

Entities or individuals that provide goods or services to another business, often as part of a supply chain.