Suppose there are two firms A and B in the market and the market demand is P = 50 – Q, where P is the price per unit and Q is the total quantity produced by the two firms (the sum of QA and QB ). The marginal cost of producing the product is $10 for both firms and fixed costs are zero. Determine how much should firm A produce at the Cournot equilibrium. Determine what would be the price if both firms would produce at the Cournot equilibrium. Multiple choice answer selection: (23.33,13.33,22,26.66,26)
Suppose there are two firms A and B in the market and the market demand is P = 50 – Q, where P is the price per unit and Q is the total quantity…
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