Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P. The two firms in the market are firm V and firm W, and the marginal cost of producing the goods in question is equal to $25. Which of the following describes the Nash equilibrium in this market?

A. QV + QW = 2,750

B. One of the firms produces 5,500 units of output, and one of the firms does not produce.

C. QV = QW = 5,500

D. QV = QW = 2,750


D. QV = QW = 2,750

Economics

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