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 more profit would a monopolist earn compared to the combined profit earned by the two duopoly firms together in the Nash equilibrium?
A. $180,000
B. $2,222.22
C. $11,111.11
D. $9,333.33
B. $2,222.22
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Briefly and concisely define the following terms: a. statistical discrimination b. compensating wage differential c. affirmative action
What will be an ideal response?
In the figure above, using the midpoint method, what is the price elasticity of demand between points A and B?
A) 0.05 B) 0.13 C) 0.43 D) 1.00 E) 2.33
The proportion of the total population aged 0–15 and over 65, is known as the
(a) dependency burden. (b) unproductive population. (c) surplus labor. (d) population momentum.
Answer the following statements true (T) or false (F)
1. An increase in the number of inexperienced workers in the labor force is likely to increase the unemployment rate relative to the level of output. 2. The total labor force includes all persons in the non institutional population who are either working or seeking work. 3. Much of the unemployment associated with recessions is cyclical in nature. 4. Frictional unemployment is caused primarily by automation. 5. Underemployment includes employed workers not performing at full capacity.