Two firms compete as a Stackelberg duopoly. The demand they face is P = 100 ? 3Q. The cost function for each firm is C(Q) = 4Q. The profits of the two firms are:
A. ?L = $192; ?F = $91.
B. ?L = $56; ?F = $28.
C. ?L = $56; ?F = ?$28.
D. ?L = $384; ?F = $192.
Answer: D
You might also like to view...
The opportunity cost of a good is the same as its
A) money price. B) relative price. C) price index. D) none of the above.
If a nation is going to achieve and sustain a high rate of economic growth, it must
a. prohibit low-wage foreign producers from supplying goods to the domestic market. b. have an abundant domestic supply of low cost energy resources. c. have a mechanism capable of attracting savings and channeling them into wealth-creating projects. d. impose regulations that will limit the intensity of competition among domestic firms.
If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 250 million, then output per person:
A. remains constant. B. doubles. C. decreases. D. increases, but by less than 100 percent.
One defining characteristic of pure monopoly is that the ________.
A. monopoly produces a product with no close substitutes B. monopoly uses advertising C. entry into the industry is relatively easy, but exit is difficult D. monopoly is a price taker