A duopoly faces the inverse demand curve p = 160

Name: A duopoly faces the inverse demand curve p = 160 - 2q.Both firms in the industry have constant costs of $10 per unit of output.In a Cournot equilibrium how much output will each duopolist sell? A)75 B)54 C)25 D)35 E)48
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

A duopoly faces the inverse demand curve p = 160 - 2q.Both firms in the industry have constant costs of $10 per unit of output.In a Cournot equilibrium how much output will each duopolist sell?
A)75
B)54
C)25
D)35
E)48

Quizplus · Accepted Answer

The Answer is C