Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is
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. How much profit does each producer earn in the Nash equilibrium?
A) $13,340
B) $0
C) $8893.31
D) $5,336
Correct Answer:
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Q8: Kate and Alice are small-town ready-mix concrete
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Q15: Kate and Alice are small-town ready-mix concrete
Q16: Kate and Alice are small-town ready-mix concrete
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Q18: Suppose the daily demand for Coke and
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