Question

Scientists found a X-plant which is rich in protein has delicious taste. Mary decides to produce the canned vegetables, mixing X-plant with other vegetables. The market demand curve is linear and is given as: P = 30 – Q. The marginal cost to produce this canned vegetable is $3. What will be the price of this new canned vegetable in the long run if the industry is a Cournot duopoly?

a. $3

b. $9

c. $12

d. $13.50

e. none of the above

Answer 1