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 Alice's profit?
A. $10,000
B. $5,000
C. $20,000
D. $15,000
B. $5,000
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An individual having an unusually bad year will be on her short-run consumption function at a point ________ her long-run consumption function, with an unusually ________ saving ratio
A) above, high B) above, low C) below, high D) below, low
Alternative proposals to change the current system of exchange rates include
a. a new explicit system of fixed exchange rates. b. adjustable target zones for exchange rates. c. a dirty float rate system. d. Both a and b e. Both b and c
The nominal interest rate tells you how fast the number of dollars in your bank account rises over time
a. True b. False Indicate whether the statement is true or false
Index funds are a portfolio of:
A. bonds with rates of return fixed at 2 percentage points above the rate of inflation. B. mutual funds that track different indexes. C. stocks or bonds that exactly match a particular index. D. stocks guaranteed rates of return in excess of growth in the GDP price index.