Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?
A. 2,000
B. 1,333.34
C. 1,000
D. 4,000
A. 2,000
You might also like to view...
The marginal propensity to consume is difficult to estimate because
a) it depends on expectations of future income b) it depends on perceptions regarding the permanence of changes in income c) it depends on credit and borrowing constraints d) it declines as uncertainty increases e) all of the above
The goal of expansionary fiscal policy is to:
A. increase the money supply. B. cool off the economy. C. reduce interest rates. D. stimulate the economy.
Suppose a family wants to save $60,000 for a child's tuition. The child will be attending college in 18 years. For simplicity, assume the family is saving for a one-time college tuition payment. If the interest rate is 6%, then about how much does this family need to deposit in the bank today?
A. $10,000 B. $42,000 C. $21,000 D. $57,000
A cartel is
What will be an ideal response?