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Suppose Two Cournot Duopolist Firms Operate at Zero Marginal Cost

Question 24

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Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Firm 1's best-response function is


A) q1= (a - b Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Firm 1's best-response function is A) q1= (a - b ) /2b. B) q1= (a - 2b ) /2b. C) q1= a/b. D) q1= a/2b. ) /2b.
B) q1= (a - 2b Suppose two Cournot duopolist firms operate at zero marginal cost.The market demand is p = a - bQ.Firm 1's best-response function is A) q1= (a - b ) /2b. B) q1= (a - 2b ) /2b. C) q1= a/b. D) q1= a/2b. ) /2b.
C) q1= a/b.
D) q1= a/2b.

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