Question: O b.P = 120 - 20 - 2Q2 O c. P = 120 - 10 - Q2 O d.P = 120 - 40 - 2Q2

O b.P = 120 - 20 - 2Q2 O c. P = 120 - 10 - Q2 O d.P = 120 - 40 - 2Q2 QUESTION 3 Firms 1 and 2 are Cournot competitors in a market with inverse demand P = 200 - 5Q, where Q is industry output and marginal cost is constant at MC = 50. What is the best response function of firm 1? O a. Q1 = 15 - Q2/2 O b. Q1 = 30 - Q2 O c. Q1 = 45 - Q2/2

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