The diagram below that accompanies this question illustrates curves for a firm operating in a differentiated-product oligopoly. One of the demand curves is relevant when rivals match the firm's price changes; the other demand curve is relevant when rivals do not match price changes.

Suppose the manager believes that rivals will match price cuts and will also match a price increase. What is the profit maximizing quantity?

options:

80

45

62

20

Pine Marginal Cost ............ Demand A ..................... ............... . MR-B Demand 8 Quantity