Multiple Choice
-The above figure shows the reaction functions for two pizza shops in a small isolated town. Firm B producing 100 pizzas and firm A producing 50 pizzas is NOT a Cournot equilibrium because
A) Cournot duopolists agree to share the market equally.
B) firm B is not on its best-response function.
C) firm A is not on its best-response function.
D) neither firm is on its best-response function.
Correct Answer:
Verified
Correct Answer:
Verified
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