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USE THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS: Consider a Cournot duopoly involving firms A and B, where the demand is given by P
USE THE FOLLOWING INFORMATION FOR THE NEXT THREE QUESTIONS:
Consider a Cournot duopoly involving firms A and B, where the demand is given by P = 220 - qA - qB and both firms have marginal cost of 10. Suppose that firm A thinks that firm B will choose qB = 90.
1. What is firm A's best response?
Group of answer choices
a. qA = 55
b. qA = 105
c. qA = 110
d. qA = 70
e. none of the other choices is correct
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