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. The Cournot model describes the competition in this market. What is the difference in the deadweight loss compared to a monopoly in this market?
A. A monopoly would create $6,666.67 more deadweight loss
B. A monopoly would create $6,666.67 less deadweight loss
C. A monopoly would create $5,555.56 more deadweight loss
D. A monopoly would create $5,555.56 less deadweight loss
C. A monopoly would create $5,555.56 more deadweight loss
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The term "property rights" refers to
A) the physical possession of a house or any other property which the owner legally purchased. B) the ability to exercise control over one's own resources within the confines of the law. C) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud. D) the government's right to appropriate land from wealthy land owners to redistribute to peasants.
Which of the following is not an example of a consumption good? a. video games
b. a television c. a tractor d. a trip to Hawaii
A fall in the price level:
A. reduces the value of money in peoples' pockets, so people buy less goods. B. increases the value of money in peoples' pockets, so people buy more goods. C. increases the value of money in peoples' pockets, so people buy less goods. D. reduces the value of money in peoples' pockets, so people buy more goods.
A good is scarce if we must sacrifice something to obtain it.
a. true b. false