Suppose in a Cournot Duopoly That Two Firms, Firm 1 $P = 50 -$

Multiple Choice

Suppose in a Cournot duopoly that two firms, Firm 1 and Firm 2, face market demand $P = 50 -$ $Q$ and both have marginal cost, $M C = \$ 20$ . Firm $1 ^ { \prime }$ s reaction function can be written as:

A) $Q _ { 1 } = 45 - 0.5 Q _ { 2 }$
B) $Q _ { 1 } = 25 - 0.5 Q _ { 2 }$
C) $Q _ { 1 } = 15 - 0.5 Q _ { 2 }$
D) $Q _ { 1 } = 10 - 0.5 Q _ { 2 }$