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. How much profit does each producer earn in the Nash equilibrium?
A. $115,555.56
B. $10,666.67
C. $8,888.89
D. $16,000
C. $8,888.89
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In terms of location decisions, firms evaluate the infrastructure of the area in terms of access to transportation as well as the quality of life
Indicate whether the statement is true or false
The contestable market theory best applies to
A. pure monopoly. B. oligopoly. C. monopolistic competition. D. perfect competition.
Even though mass transit systems such as buses are available in most cities in the United States, many residents decide to drive to work in their own vehicles because
A) the opportunity cost of riding a bus is too high for them. B) there is no opportunity cost of them to drive. C) they are not rational. D) they do not behave according to the economic way of thinking.
In the economic sense, almost everything is scarce. ________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price
A) Scarcity B) A shortage C) A surplus D) An overstock