A US Company and a Japanese Company Sells an Identical Product

Multiple Choice

A U.S. company and a Japanese company sells an identical product in the U.S. market. The inverse demand equation for this product is P_US = 5 !0.2(Q_USUS + Q_{US J}) . Suppose that the best-response functions of the U.S. and Japanese companies are Q_USUS = 10 !0.5Q_{US J} and Q_{US J} = 7.5 !0.5Q_USUS, respectively. The Cournot-Nash equilibrium {Q_USUS, Q_{US J} } in the U.S. market is:

A) {8.33, 3.33}.
B) {1.66, 6.66}.
C) {6.66, 1.66}.
D) {3.33, 8.33}.
E) None of the above.