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
You might also like to view...
If firms in a duopoly with homogeneous products compete on price, a Nash equilibrium is reached when each firm charges a price ________
A) equal to its average cost B) higher than its average cost C) equal to its marginal cost D) lower than its marginal cost
Skeeter's Skeeball Castle has seen its business slow down ever since Kerrie's Off-Key Karaoke opened up next door. Since the opening of Kerrie's Off-Key Karaoke, the opportunity cost of playing skeeball at Skeeter's has
A) decreased. B) not changed. C) fallen to zero. D) increased.
In economic theorizing, common sense will always lead to the correct answer
a. True b. False Indicate whether the statement is true or false
The aggregate demand curve will shift to the left ________ the initial decrease in government purchases
A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than