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. If Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?
A. P = 75 - 0.005QK
B. P = 75 - 0.005QA
C. P = 150 - 0.005QK
D. P = 175 - 0.005QA
A. P = 75 - 0.005QK
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