Question 1 For all questions in this quiz, consider the following Cournot duopoly set-up. Two price-making...

 

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Question 1 For all questions in this quiz, consider the following Cournot duopoly set-up. Two price-making firms have marginal costs given, respectively, by: MC₁ = 25 +0.20Q1, and MC2 = 25+ 0.60Q2. Price-taking demand is given by: MB = 100 -0.50Q. What is the resulting allocation? O Total quantity demanded is 80.84, of which 49.40 is produced by firm 1 and 31.44 is produced by firm 2. Total quantity demanded is 98.63, of which 31.50 is produced by firm 1 and 57.13 is produced by firm 2. O Total quantity demanded is 75.00, of which 50.00 is produced by firm 1 and 25.00 is produced by firm 2. O Total quantity demanded is 85.67, of which 45.27 is produced by firm 1 and 40.40 is produced by firm 2. Question 1 For all questions in this quiz, consider the following Cournot duopoly set-up. Two price-making firms have marginal costs given, respectively, by: MC₁ = 25 +0.20Q1, and MC2 = 25+ 0.60Q2. Price-taking demand is given by: MB = 100 -0.50Q. What is the resulting allocation? O Total quantity demanded is 80.84, of which 49.40 is produced by firm 1 and 31.44 is produced by firm 2. Total quantity demanded is 98.63, of which 31.50 is produced by firm 1 and 57.13 is produced by firm 2. O Total quantity demanded is 75.00, of which 50.00 is produced by firm 1 and 25.00 is produced by firm 2. O Total quantity demanded is 85.67, of which 45.27 is produced by firm 1 and 40.40 is produced by firm 2.

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Answer To determine the resulting allocation in a Cournot duopoly setup we need to find the quantiti... View the full answer