Suppose the Demand Function in the Industry Is P =

Multiple Choice

Suppose the demand function in the industry is p = 100 - y and each firm has a constant marginal cost of $40 and no fixed costs. If the Cournot model of oligopoly accurately reflects firm behaviour in this industry, then the aggregate equilibrium output of n + 1 firms can be expressed as:

A) 160(n + 1) /(n + 2) .
B) 20(n + 1) .
C) 60(n + 1) /(n + 2) .
D) 160n/(n + 1) .