When marginal cost is constant and zero, the interdependence between Cournot duopolists causes
A)price to be 1/3 higher and quantity to be 1/3 lower than the corresponding values in the monopoly case.
B)price to be 1/3 lower and quantity to be 1/3 higher than the corresponding values in the monopoly case.
C)prices and quantities to be the same as they would be in the monopoly case.
D)prices and quantities to be the same as they would be in the perfectly competitive case.

Question

Quizplus · Accepted Answer

When marginal cost is constant and zero, Cournot duopolists will produce more than a monopolist, leading to a lower price and higher quantity compared to the monopoly case.

When Marginal Cost Is Constant and Zero, the Interdependence Between