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 does Alice produce in the Nash equilibrium?
A. 2,000
B. 1,333.33
C. 800
D. 4,000
B. 1,333.33
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Even though the catalogs listed in the Application were reissued every six months, the prices which were tracked in these retail catalogs
A) were not listed due to low rates of inflation. B) changed every month. C) tended to fall during periods of high inflation. D) were typically fixed for a year or more.
Suppose we are plotting the relationship between the unemployment rate and the growth rate of real GDP
If the unemployment rate is measured along the vertical axis and the growth rate of real GDP is measured along the horizontal axis, we will get a(n) ________. A) downward sloping curve B) horizontal straight line C) vertical straight line D) upward sloping curve
The relationship between real GDP and potential GDP is that
A) real GDP always equals potential GDP. B) real GDP never equals potential GDP. C) real GDP fluctuates about potential GDP. D) real GDP is always below potential GDP.
The government sets up a lighthouse to prevent ships from crashing into rocks near the shore. The lighthouse is an example of a _____
a. merit good b. club good c. public good d. private good