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. What is Kate's marginal revenue function?
A. MR = 100 - 0.005QK - 0.01QA
B. MR = 100 - 0.005QA - 0.005QK
C. MR = 100 - 0.005QA - 0.01QK
D. MR = 100 - 0.005QK - 0.005QA
C. MR = 100 - 0.005QA - 0.01QK
You might also like to view...
If the government increases expenditure by $40 billion and increases tax revenue by $40 billion, what is the impact on aggregate demand? Explain your answer
What will be an ideal response?
If the price level increased from 200 to 250, then what was the inflation rate?
a. 50 percent b. 25 percent c. 20 percent d. None of the above is correct.
One of the reasons that Real Gross Domestic Product is not synonymous with social welfare is
A. domestic production (cooking, laundry and such) are not counted. B. things produced by people under 18 are not counted. C. quality has remained steady. D. people substitute between goods.
A market in which finished goods and services are exchanged is a:
a) Product market. b) Financial market. c) Intermediate-goods market. d) Factor market.