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

Economics

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