Consider two firms competing to sell a homogeneous product by setting price. The inverse demand curve is given by P = 6 ? Q. If each firm's cost function is Ci(Qi) = 6 + 2Qi, then each firm will symmetrically produce ________ units of output and earn ________.
A. 2 units; losses of $6
B. 4 units; losses of $2
C. 4 units; profits of $6
D. 2 units; profits of $2
Answer: A
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