4. Two Cournot competitors, named firm A & B, each have total cost.docx

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4. Two Cournot competitors, named firm A & B, each have total cost of 2x2, where x is a firm s output choice. Say total demand is X = 1400 P, where P is price. If firm B produces 120 units of output, what is firm A s optimal output amount? (a.) 145.2 (b.) 185 (c.) 205.5 (d.) 213.3 5. Consider the two firms in problem 4 again. If firm B produces the 120 units of output and A produces the output level from question 4, then what will the resulting market price be? (a.) \$1,066.7 (b.) \$998.8 (c.) \$965.5 (d.) \$960.5 4. Two Cournot competitors, named firm A & B, each have

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Unformatted text preview: total cost of 2x2, where x is a firm s � output choice. Say total demand is X = 1400 P, where P is � price. If firm B produces 120 units of output, what is firm A s optimal output amount? � (a.) 145.2 (b.) 185 (c.) 205.5 (d.) 213.3 5. Consider the two firms in problem 4 again. If firm B produces the 120 units of output and A produces the output level from question 4, then what will the resulting market price be? (a.) \$1,066.7 (b.) \$998.8 (c.) \$965.5 (d.) \$960.5...
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