Stackelberg Leader-Follower duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. The equilibrium price and quantity for the total market will be
A. Q = 40, P = 50.
B. Q = 45, P = 45.
C. Q = 30, P = 60.
D. Q = 60, P = 30.
Answer: B
You might also like to view...
When the government sets a price floor which is below the equilibrium price
A. a price ceiling will follow. B. a shortage will develop. C. a surplus will develop. D. the equilibrium price will be maintained.
Individual investors can reduce transactions costs by
A) buying common stock rather than bonds. B) combining their purchases through an intermediary. C) common stocks directly, rather than through a mutual fund. D) making loans directly, rather than depositing funds in a bank.
The current Medicare system is designed so that it actually encourages
A) cost reductions. B) higher costs of medical services. C) higher costs only for surgeries. D) lower drug costs for recipients.
Taxation alters the behavior patterns of individuals
a. True b. False Indicate whether the statement is true or false