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Question
In a Cournot duopoly, we find that Firm 1's reaction function is Q1 = 50 - 0.5Q2, and Firm 2's reaction function is Q2 = 75 - 0.75Q1. What is the Cournot equilibrium outcome in this market?A) Q1 = 20 and Q2 = 60
B) Q1 = 20 and Q2 = 20
C) Q1 = 60 and Q2 = 60
D) Q1 = 60 and Q2 = 20
Answer
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Related questions
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Q:
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Q:
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Q:
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Q:
Scenario 14.4:
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Q:
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Q:
Use the following statements to answer this question:
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Q:
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Q:
An increase in technology that enhances labor productivity will likely result in:
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Q:
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Q:
If leisure is a normal good, then the income effect of a decrease in wage will
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B) increase the number of hours worked.
C) decrease the number of leisure hours.
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Q:
The marginal revenue product can be expressed as the
A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.