Duopolists a and B Face the Following Demand Curves: Q_A

Duopolists A and B face the following demand curves: Q_A = 100 - 2P_A + 2P_B and Q_B = 100 - 2P_B + 2P_A.If both firms have zero marginal cost,what are the profit-maximizing prices and quantities?

A) P_A = 100, Q_A = 60, P_B = 80, Q_B = 140.
B) P_A = 25, Q_A = 100, P_B = 25, Q_B = 100.
C) P_A = 50, Q_A = 80, P_B = 40, Q_B = 120.
D) P_A = 50, Q_A = 100, P_B = 50, Q_B = 100.
E) P_A = 60, Q_A = 60, P_B = 40, Q_B = 140.

Correct Answer:

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