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Two firms compete as a Cournot duopoly selling an identical product. The demand they face is P = 578 4Q, where Q = Q1+ Q2.

Two firms compete as a Cournot duopoly selling an identical product. The demand they face is P = 578 4Q, where Q = Q1+ Q2. The cost function for each firm is TCi= 3000 + 2Qiand marginal cost is MCi= 2. The subscript i represents each individual firm. Firm 2's best response function is:

A.Q2=36-0.5Q1

B.Q2=144-Q1

C.Q2=144-0.25Q1

D.Q2=72-0.5Q1

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