Cournot duopolists face a market demand curve , where is total market demand. Each can produce output at a marginal cost of Rs 20 (constant). The equilibrium price and firm quantity are
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4 marks, −1MicroeconomicsMonopolistic competition and oligopolyCournot competitionModerateabout 3 min
JNU SIS 2011 Question 4: Monopolistic competition and oligopoly
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Cournot duopolists face a market demand curve P = 56 - 2Q, where Q is total market demand. Each can produce output at a marginal cost of Rs 20 (constant). The equilibrium price and firm quantity are (A) 26, 6 (B) 30, 6· 5 (C) 36, 10 (D) 32, 6
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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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