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. Which of the following best represents Alice's inverse residual demand function?
A. P(QA) = (100 - 0.005QA) - 0.005QK
B. P(QA) = (100 - 0.005QK) - 0.005QA
C. P(QA) = (200 - 0.005QA) - 0.005QK
D. P(QA) = (200 - 0.005QA) - 0.005QA
B. P(QA) = (100 - 0.005QK) - 0.005QA
You might also like to view...
Cost-push inflation might initially result from
A) the use of new technology. B) a decrease in the quantity of money. C) an increase in the cost of resources. D) an increase in the quantity of money. E) an increase in government expenditure.
The more good substitutes there are for a product, the more likely it is that the total revenue for the good in question would increase as a result of an increase in price
a. True b. False Indicate whether the statement is true or false
Suppose the population (age 16 and over) of Peru is 400 million; 20 million are unemployed, and 230 million hold jobs. What are the rates of unemployment and labor force participation of Peru?
a. Unemployment is 8 percent, and labor force participation is 62.5 percent. b. Unemployment is 8.7 percent, and labor force participation is 92 percent. c. Unemployment is 8.7 percent, and labor force participation is 62.5 percent. d. Unemployment is 5 percent, and labor force participation is 57.5 percent.
Which of the following is considered a firm's "factor of production"?
A. Money or cash balances of the firm B. The firm's shares of common stock C. U.S. Treasury bonds owned by the firm D. The office building occupied by the firm