Question
Consider a Cournot duopoly with the following inverse demand function: P = 450 5Q1 5Q2 . The firms' marginal costs are identical and are given
Consider a Cournot duopoly with the following inverse demand function: P = 450 5Q1 5Q2 . The firms' marginal costs are identical and are given by MCi(Qi) = 5Qi. Based on this information, firm 1 and 2's marginal revenue functions are Multiple Choice
MR1(Q1,Q2) = 450 5Q1 10Q2 and MR2(Q1,Q2) = 450 10Q1 5Q2.
MR1(Q1,Q2) = 450 10Q1 10Q2 and MR2(Q1,Q2) = 450 10Q1 10Q2.
MR1(Q1,Q2) = 225 10Q1 and MR2(Q1,Q2) = 225 10Q2.
MR1(Q1,Q2) = 450 10Q1 5Q2 and MR2(Q1,Q2) = 450 5Q1 10Q2.
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
978-0133020267
