Suppose the market demand curve is given by $P = 100 - 2 Q$ . If one Cournot duopolist produces $Q _ { 1 } = 10$ , the residual demand curve faced by the other Cournot duopolist is A) P = 90 - 2Q₂. B) P = 80 - 2Q₂. C) Q₂ = 80 - P. D) Q₂ = 80 - 2P.

Question

Quizplus · Accepted Answer

The residual demand curve for the second duopolist is derived by substituting $Q_1 = 10$ into the market demand curve: $P = 100 - 2(Q_1 + Q_2)$. This simplifies to $P = 100 - 2(10 + Q_2) = 80 - 2Q_2$.

Suppose the Market Demand Curve Is Given By P=100−2QP = 100 - 2 QP=100−2Q

Suppose the Market Demand Curve Is Given By $P = 100 - 2 Q$