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
You might also like to view...
The demand for money as a cushion against unexpected contingencies is called the
A) transactions motive. B) precautionary motive. C) insurance motive. D) speculative motive.
In a recent article, two economists estimated that the 37.5% increase in price that would result from a 75 cent tax increase on cigarettes would lead to a decrease in smoking among college students of 30%
What can you conclude about the demand for cigarettes among college students? A) It is price elastic. B) It is price inelastic. C) It is unit elastic. D) It is perfectly inelastic.
The primary difference between a change in supply and a change in the quantity supplied is:
A) a change in quantity supplied is a shift in the supply curve, and a change in supply is a movement along the supply curve. B) both a change in quantity supplied and a change in supply are movements along the supply curve, only in different directions. C) a change in quantity supplied is a movement along the supply curve, and a change in supply is a shift of the supply curve. D) a change in supply is a movement to the left along the supply curve and a change in quantity supplied is a movement to the right along the supply curve.
Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. At income level ________, this household's saving is greater than zero and this household's consumption is greater than zero.
A. -$200 B. $800 C. $1,000 D. $1,500