Waec Model Questions Vol1 2021 Economics Question 30

Practice objective / multiple choice question 30 from the 2021 Waec Model Questions Vol1 Economics examination.

Waec Model Questions Vol1 2021 Economics Objective / Multiple Choice Medium Difficulty
Question 30 WAEC_MODEL_QUESTIONS_VOL1 • 2021 • ECONOMICS • objective

Two firms (1 and 2) produce a homogeneous product in a Cournot duopoly. The market demand is P = 500 - 2Q, where Q = q₁ + q₂. Both firms have constant marginal cost of ₦50 per unit. Determine the Cournot‑Nash equilibrium quantities for each firm and the resulting market price.

Answer Options

A. q1=60, q2=80, P=220
Correct Answer B. q1=75, q2=75, P=200
C. q1=100, q2=100, P=100
D. q1=50, q2=50, P=300
Correct Answer
B
Correct Option:
q1=75, q2=75, P=200

About This Question

This is Waec Model Questions Vol1 2021 Economics Question 30. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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