Question
Economics Question on Demand analysis
An industry has two firms. They face an inverse demand function P=200-4Q and a constant unit cost of Rs.8.0. The Cournot duopoly equilibrium price (P) and Quantity (Q) will be
A
8, 48 respectively
B
72, 32 respectively
C
104, 24 respectively
D
8, 24 respectively
Answer
72, 32 respectively
Explanation
Solution
The correct answer is (B) : 72, 32 respectively.