Suppose that in a perfectly competitive industry the equilibrium ...

[tsand2]

Suppose that in a perfectly competitive industry the equilibrium industry quantity is 10,000 units. Suppose that the monopoly output is 5,000 . For a 2-firm Cournot Oligopoly (N =2) known as a duopoly, what is a likely Cournot QUANTITY for the industry?
 a. 3,000 units
  b. 5,000 units
  c. 6,667 units
  d. 10,000 units
  e. 15,000 units

Question 2

If both firms plan to be in business for 5 years, then the Nash Equilibrium will be
 a. For each firm charge a LP every year
  b. For neither firm to charge a LP in early years, but to charge a HP in later years.
  c. For each firm to charge a HP every year
  d. For neither firm to charge a HP in early years, but to charge a LP in later years.

[Pswine]

Answer to Question 1

c

Answer to Question 2

a

[tsand2]

Thanks for the timely response, appreciate it

[aruss1303]

YES! Correct, THANKS for helping me on my review