Consider a market on which there are only two firms (Firm A and Firm B). They have the same marginal cost, which is constant and equal to 10. There are no fixed costs. The demand is given by D(p) = 36 - 2p. Suppose the two firms now compete simulteneously in quantity. How much good will each firm produce in equilibrium? A.2 B. None of the other answers are correct
C. 8/3 D. 3 E. 16/3