Suppose that two identical firms produce widgets and that they are the only firms in the market. The marginal cost is €60 for each firm. Price is determined by the following demand curve: P = 300 - Q where Q=Q1+ Q2- The output produced by each firm in a Cournot equilibrium is O A. 120 O B. 40 OC. 80 O D. 160

Suppose that two identical firms produce widgets and that they are the only firms in the market. The marginal cost is €60 for each firm. Price is determined by the following demand curve: P = 300 - Q where Q=Q1+ Q2- The output produced by each firm in a Cournot equilibrium is O A. 120 O B. 40 OC. 80 O D. 160

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 7CQ

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