Multiple Choice
A particular market is served by two firms. The market demand curve is given by p = 200 - y. Each firm incurs a constant cost per unit of $50. The Cournot reaction function for firm 1 is given by:
A) p * = (200 - y * ) - y1.
B) y * = 75 - y * /2. 1 2 1 2
C) y * = 30 - y * /2.
D) p * = 150 - y * /2. 1 2 1 2
Correct Answer:
Verified
Correct Answer:
Verified
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