In Cournot competition, the market inverse demand curve is P = 240 - 0.5Q, where Q is the total output produced by Firm A and Firm B, qA + qB. The marginal cost for each firm is constant at $30. If Firm B produces 140 units of output, how much output should Firm A produce?
A) 80
B) 140
C) 34
D) 90
Correct Answer:
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