Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P.The two firms in the market are firm V and firm W,and the marginal cost of producing the goods in question is equal to $25.Which of the following describes the Nash equilibrium in this market?
A) PV = PW = $25
B) One of the firms charges a price higher than $25, and one of the firms charges a price lower than $25.
C) PV = PW > $25
D) PV = PW < $25
Correct Answer:
Verified
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Q8: In a Bertrand model of oligopoly:
A) firms
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Q14: In the Cournot model of oligopoly:
A) firms
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