Reference the following information about the market demand function for questions 1 to 15. These questions are on different types of market structures - monopoly, perfect competition, Cournot oligopoly market, and the Stackelberg oligopoly market.

The market demand function is given the following equation: P = 2000 - Q where Q is the industry's output level.

Suppose initially this market is served by a single firm. Let the total cost function of this firm be given the function C(Q) = 200Q. The firm's marginal cost of production (MC) is equal to the firm's average cost (AC):

MC = AC = 200.

What would be the industry output level if this was a perfectly competitive industry instead?

Group of answer choices

1800

1500

1200

900

What is the difference in the industry output levels produced by the perfectly competitive industry (Qc) and the monopoly industry (Qm)?

Group of answer choices

Qc - Qm = 900 units

Qc - Qm = 1800 units

Qc - Qm = - 900 units

Qc - Qm = 600 units

Now suppose two firms supply this market instead of one firm. Thus, Q = Q1 + Q2 where Q1 is the output produced by firm 1 and Q2 is the output produced by firm 2. Thus, the market demand function is now

Marginal profit function of firm 1: 1800 - 2Q1 - Q2

Marginal profit function of firm 2: 1800 - Q1 - 2Q2

What are the levels of equilibrium output levels produced by firm 1 and firm 2 in the Cournot model equilibrium?

Group of answer choices

300, 300

450, 450

600, 600

600, 300

What will be the total industry output produced when firms engage in Cournot market competition?

Group of answer choices

600

900

750

1200

What will be the equilibrium market price in the Cournot model?

Group of answer choices

$1000

$800

$600

$200

What will be the profit earned by each of the symmetric firms in the Cournot market equilibrium?

Group of answer choices

$360,000, $360,000

$720,000, $720,000

$750,000, $750,000

$840,000, $840,000