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. If Kate produces 10,000 cubic yards per year, what is Alice's inverse demand function?

A. P = 75 - 0.005QK

B. P = 75 - 0.005QA

C. P = 50 - 0.005QK

D. P = 50 - 0.005QA


D. P = 50 - 0.005QA

Economics

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