There are two major producers of corncob pipes in the world, both located in Herman, Missouri.Suppose that the inverse demand function for corncob pipes is described by p = 160 - 3q, where q is total industry output, and marginal costs are zero.What is the Cournot reaction function of firm 1 to the output, q2, of firm 2?
A) 160 - 3q22
B) 160 - 3q2
C) 26.67 - .5q2
D) 53.33 - 3q2
E) 163 - 6q2
Correct Answer:
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