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A Cournot Oligopoly Has 2 Firms, and Inverse Market Demand MC=$20M C = \$ 20

Question 33

Multiple Choice

A Cournot oligopoly has 2 firms, and inverse market demand P = 60 - Q. All firms have marginal cost, MC=$20M C = \$ 20 . The equilibrium price in this market will be


A) $20.50
B) $22
C) $33.33
D) $40.15

Correct Answer:

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