Figure 8.8 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...

Why does a principal-agent problem create transactions costs? If the goal is economic efficiency, what liability rule should be used when a principal-agent problem exists?

What will be an ideal response?

Economics

When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.

A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline

Economics

The Internet has created a new category in the book selling market, namely, the "barely used" book. How does the availability of barely used books affect the market for new books?

A) The demand curve for new books shifts to the right. B) The supply curve for new books shifts to the left. C) The demand curve for new books shifts to the left. D) The supply curve for new books shifts to the right.

Economics

The Ricardian model can be simplified and made more explanatory by assuming that there is only one resource used in producing goods. What did Ricardo assume the resource was?

a. capital b. technology c. labor d. loanable funds

Economics