Consider a
Cournot duopoly. The market demand function is P = 130 -
(q1 + q2), where P is the market price,
q1 is the output produced by Firm 1 and q2 is
the output produced by Firm 2. The two firms have a constant
marginal cost c =10. The pure strategy Nash equilibrium of this
game is:
A.
(q1*,
q2*) = (20, 20)
B.
(q1*,
q2*) = (10, 10)
C.
(q1*,
q2*) = (30, 30)
D.
(q1*,
q2*) = (40, 40)