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Suppose there are two firms A and B in the market and the market demand is P = 50 - Q, where P is the price per unit and Q is the total quantity...


Suppose there are two firms A and B in the market and the market demand is P = 50 - Q, where P is the price per unit and Q is the total quantity produced by the two firms (the sum of QA and QB ). The marginal cost of producing the product is $10 for both firms and fixed costs are zero.

Determine how much should firm A produce at the Cournot equilibrium.
A. 26.66
B. 23.33
C. 26
D. 22
E. 13.33
Determine what would be the price if both firms would produce at the Cournot equilibrium.
A. 23.33
B. 26.66
C. 22
D. 13.33
E. 26

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