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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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