Consider a Cournot Duopoly with the Following Inverse Demand Function

Multiple Choice

Consider a Cournot duopoly with the following inverse demand function: P = 100 - 2Q₁ - 2Q₂.The firms' marginal cost are identical and given by MC_i(Q_i) = 2Q_i.Based on this information firm 1 and 2's marginal revenue functions are

A) MR₁(Q₁,Q₂) = 100 - 2Q₁ - Q₂ and MR₂(Q₁,Q₂) = 100 - Q₁ - 2Q₂.
B) MR₁(Q₁,Q₂) = 100 - 4Q₁ - 2Q₂ and MR₂(Q₁,Q₂) = 100 - 2Q₁ - 4Q₂.
C) MR₁(Q₁,Q₂) = 100 - 2Q₁ - 4Q₂ and MR₂(Q₁,Q₂) = 100 - 4Q₁ - 2Q₂.
D) MR₁(Q₁,Q₂) = 24.5 - 0.5Q₂ and MR₂(Q₁,Q₂) = 24.5 - 0.5Q₁.