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There are two firms, i = A, B, active in two independent markets but facing the same inverse demand function: p(q) = 100 2q. The
There are two firms, i = A, B, active in two independent markets but facing the same inverse demand function: p(q) = 100 2q. The constant marginal cost is 20, and there are no fixed costs. Q1 Suppose firms have no data and behave as independent monopolists. The equilibrium uniform price and profit of each firm are, respectively:
(A) 40, 1600.
(B) 20, 800.
(C) 30, 600.
(D) None of the answers is correct.
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