Two firms, A and B, each with a marginal cost of $50, form an oligopoly whose market demand is P = 650 − 10Q. If the market is defined by Cournot competition, what quantity will they produce and what price will they charge?

	A quantity of 30 each and a price of $350
	A quantity of 30 each and a price of $50
	A quantity of 20 each and a price of $250
	A quantity of 15 each and a price of $350

Answer rating: 100% (QA)

In Cournot competition there is no first mover advantage Thus any firm can move first in selecting its level of output Let us start by solving the pro... View the full answer