For a demand curve that is horizontal, the marginal revenue curve A) will be to the left of the demand curve and half as steep. B) will be to the right of the demand curve and twice as steep. C) will be to the right of the demand curve and half as steep. D) will be the same as the demand curve. 2. If firms compete in a Cournot fashion, then each firm views the A) output of rivals as given. B) prices of rivals as given. C) profits of rivals as given. D) output, prices, and profits of rivals as given. 3. Consider a Cournot duopoly with the following inverse demand function: P = 10 - 0.5Q1 - 0.5Q2. The firms' marginal costs are identical and are given by MCi(Qi) = 3. Based on this information, firm 1 and 2's reaction functions are A) rl (Q2) = 7 - 0.5Ql and r2(Q1) = 7 - 0.5Q2. B) rl (Q2) = 14 - 0.25Q2 and r1 (Q2) = 14 - 0.25Q1. C) Q1 = 7 - 0.5Q2 and Q2 = 7 - 0.5Q1. D) Q1 = 14 - 0.25Q2 and Q2 = 14 - 0.25Q1. 4. The main difference