Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the total output, Q, is
A) 30.
B) 45.
C) 60.
D) 90.
D
Economics
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When the economy is in the liquidity trap,
A) velocity is constant. B) monetary policy is impotent. C) fiscal policy is impotent. D) income is zero
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