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Question 2 2 pts Suppose the U.S. and Saudi Arabia are the world's only oil producers. In the U.S., the marginal cost of extracting oil

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Question 2 2 pts Suppose the U.S. and Saudi Arabia are the world's only oil producers. In the U.S., the marginal cost of extracting oil is constant at $40 a barrel. In Saudi Arabia, it's also constant at only $20 a barrel. The world market price for oil is P = 120 - @ , where Q = Qu + Qs (the sum of the quantities produced by the U.S. and Saudi Arabia). Assuming Cournot competition, the resulting best-response functions are Qu = 40 - 0.5Qs and Qs = 50 - 0.5Qu. Then the U.S. will produce [ Select ] and Saudia Arabia will produce [ Select ] barrels of oil

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