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. What is total output in the Nash equilibrium?
A. 4,000
B. 2,666.66
C. 1,600
D. 8,000
B. 2,666.66
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Perfect competition and monopolistic competition are similar in this one respect:
a. firms make zero economic profit in the long run b. firms produce at the lowest point on their ATC curves c. there are few firms in each industry d. entry is difficult e. firms produce differentiated products
Refer to the information provided in Table 8.3 below to answer the question(s) that follow.
Table 8.3
Refer to Table 8.3. If the firm is in a perfectly competitive industry with a market price of $30 per unit, the firm will produce ________ units and earn a profit of ________.
A. five; $30 B. three; $20 C. four; $20 D. four; -$20
One explanation for the growth in the U.S. economy over the last 100 years is:
A. a large increase in human capital. B. a rapid decline in human capital. C. a small, incremental increase in human capital. D. Human capital was not the cause of growth in the United States over the last 100 years.
Internal rate of return analysis suggest that a project should be undertaken if
A. NPV >0. B. MB > 0. C. IRR > discount rate. D. discount rate >inflation rate.