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Questions › CUET-PG › CUET-PG 2023 Shift 1 › Q93
4 marks, −1Microeconomics › Monopolistic competition and oligopoly › Cournot competitionHardabout 2 min

CUET-PG 2023 Shift 1 Question 93: Monopolistic competition and oligopoly

An industry has two firms. They face an inverse demand function P=200−4QP = 200 - 4QP=200−4Q and a constant unit cost of Rs.8.0. The Cournot duopoly equilibrium price (P) and Quantity (Q) will be

  1. 8, 48 respectively
  2. 72, 32 respectively
  3. 104, 24 respectively
  4. 8, 24 respectively

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An industry has two firms. They face an inverse demand function P = 200 - 4Q and a constant unit cost of Rs.8.0. The Cournot duopoly equilibrium price (P) and Quantity (Q) will be 1. 8, 48 respectively 2. 72, 32 respectively 3. 104, 24 respectively 4. 8, 24 respectively (A) 8, 48 respectively (B) 72, 32 respectively (C) 104, 24 respectively (D) 8, 24 respectively

Monopolistic competition and oligopoly has come up 104 times in 7 exams since 2004.

What this question tests

This question is on Cournot competition, part of Monopolistic competition and oligopoly in Microeconomics.

Firms choosing quantities simultaneously, reaction curves, and equilibrium as the number of firms or costs change.

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Question from the CUET-PG 2023 Shift 1 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.