Figure 12.2 shows demand, marginal revenue, and costs of a duopolist. If the two duopolists have the same costs and split the market equally, each profit maximizing duopolist will earn a profit of:
A. $30,000.
B. $15,000.
C. $10,000.
D. $0.
Answer: C
Economics
You might also like to view...
An example of an international policy externality is
A) the locomotive effect. B) the liquidity effect. C) the monetary effect. D) sterilization.
Economics
Suppose that the government imposes an excise tax on widgets. The portion of the tax borne by the buyer of widgets depends upon
a. elasticity of demand. b. income of buyers. c. size of the tax that is imposed. d. cross elasticity of demand between widgets and floogles.
Economics
What is the difference between society’s view and an individual firm’s view of economic rent?
What will be an ideal response?
Economics
A tax on an imported good that raises its price is called a
A. tariff. B. quota. C. comparative advantage. D. comparative disadvantage.
Economics