As a head of the planning commission of midwest motors, your job is to determine where to locate a new plant. y
ou have access to the constant returns to scale technology y = s 1/2l 1/2 , where s is tons of steel and l is units of labor.
you can locate your plant either in country a or country b.
in country a, steel costs $7 a ton and labor costs $7 per unit.
in country b, steel costs $8 per ton and labor costs $6 per unit.

in which country should the company locate its new plant so as to minimize costs per unit of output?

Why is the cournot equilibrium an​ equilibrium? a. there are​ short-run barriers to exit in a cournot​ duopoly, so both firms cannot alter their output levels. b. given the other​ firm's level of​ production, both firms are maximizing profits and cannot improve their situation by unilaterally altering their level of output. c. both firms operate at zero profit under a cournot​ equilibrium, so they would face negative profits if they change output. d. both firms operate at minimum​ long-run average cost under a cournot​ equilibrium, so changes to output would reduce​ long-run profits. even if they​ can't collude, why​ don't firms set their outputs at the joint​ profit-maximizing levels​ (i.e., the levels they would have chosen had they​ colluded)? a. given that other firm produces at the collusive​ level, a firm could increase their own profits by increasing output above the collusive level. b. the midpoint of the collusion curve​ (i.e., the collusive​ outcome) lies below the reaction​ curves, so both firms have an incentive to increase output under the cournot duopoly. c. both a and b are correct d. both a and b are incorrect