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Pig's Snout and Boar's Breath are the only two suppliers of truffles in Sherwood Forest. Pig's Snout supplies output by its own foraging activities. Its
Pig's Snout and Boar's Breath are the only two suppliers of truffles in Sherwood Forest. Pig's Snout supplies output by its own foraging activities. Its total cost of supplying q1 pounds of truffles is C1 (q1 ) = 93. Boar's Breath supplies output by importing truffles from abroad at a constant price. Its total cost of supplying 92 pounds of truffles is C2 (q2 ) = 20q2. Consumers view the truffles from either supplier as identical and the inverse market demand curve for truffles is P = 120 - (q1 + q2). If Pig's Snout and Boar's Breath compete as Cournot duopolists, what is the price of a pound of truffles in the market equilibrium? O P = 80 O P = 40 O P = 90 O P = 60
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