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Suppose the Market Has Two Firms, and Market Demand Is

Question 9

Multiple Choice

Suppose the market has two firms, and market demand is p = 200 - 4y. The cost functions for all firms are C(yi) = 600 + 30yi. The equilibrium number of firms this market can support under Cournot is:


A) 2.
B) 5.
C) 3.
D) 4.

Correct Answer:

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