Suppose the demand in a certain duopoly market with homogenous goods is Qd = 8,000 - 100P. The two firms in the market are firm V and firm W, and the marginal cost of producing the goods in question is equal to $25. Which of the following describes the Nash equilibrium in this market?
A. QV + QW = 2,750
B. One of the firms produces 5,500 units of output, and one of the firms does not produce.
C. QV = QW = 5,500
D. QV = QW = 2,750
D. QV = QW = 2,750
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List three key reasons to study economics
What will be an ideal response?
To solve their basic long-term economic problems, developing countries primarily need
a. food. b. clothing. c. technical assistance. d. shelter.
Rent seeking is the term given
a. to an attempt by firms to create a profitable monopoly even though resources may be wasted in the process. b. to filing a lawsuit, which wastes resources, in the hope of obtaining monetary gain or a strategic market position. c. to attempts by firms to obtain earnings without contributing to production. d. All of the above are correct.
if usda estimates that expected corn-based ethanol production will increase, this is expected to:
a) increase estimated "use" of corn (in the current crop year) b) increase estimated "supply" of corn (in the current crop year)