Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is
A) q1 = (a - bq2)/2b.
B) q1 = (a - 2bq2)/2b.
C) q1 = a/b.
D) q1 = a/2b.
A
You might also like to view...
Given that the firm offers both the products would the chefs ever pay the full $100 for the high-end wok
a. Yes, because they value it at $100 b. No, because they value it at $70 c. No, because they can get a positive consumer surplus buying the no-name brand d. All of the above
Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run an unanticipated increase in the money supply will
a. raise real interest rates, lower prices, and reduce real GDP. b. raise real interest rates, lower prices, and leave real GDP unchanged. c. raise nominal interest rates, lower prices, and leave real GDP unchanged. d. lower real interest rates, raise prices, and increase real GDP.