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 maximizing output?
A. 2,000
B. 1,333.34
C. 1,000
D. 4,000
C. 1,000
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Answer the following statement true (T) or false (F)
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How do firms and households interact within the context of the circular flow model?
What will be an ideal response?