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Deck 12: Oligopoly
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Question
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. What is Kate's inverse residual demand function?
A)
B)
C)
D)
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 Kate's inverse residual demand function?A)
B)
C)
D)
Question
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. What is Alice's inverse residual demand function?
A)
B)
C)
D)
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 Alice's inverse residual demand function?A)
B)
C)
D)
Question
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 andQd 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 Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?
A)
B)
C)
D)
where P is the price of a cubic yard of concrete andQd 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 Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?A)
B)
C)
D)
Question
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. If Kate produces 10,000 cubic yards per year, what is Alice's inverse demand function?
A)
B)
C)
D)
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)
B)
C)
D)
Question
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. What is Alice's marginal revenue function?
A)
B)
C)
D)
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 Alice's marginal revenue function?A)
B)
C)
D)
Question
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 andQd 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 Kate's marginal revenue function?
A)
B)
C)
D)
where P is the price of a cubic yard of concrete andQd 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 Kate's marginal revenue function?A)
B)
C)
D)
Question
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. Find Alice's best response function.
A)
B)
C)
D)
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. Find Alice's best response function.A)
B)
C)
D)
Question
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. Find Kate's best response function.
A)
B)
C)
D)
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. Find Kate's best response function.A)
B)
C)
D)
Question
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 does Alice produce in the Nash equilibrium?
A) 2,000
B) 1,333.33
C) 800
D) 4,000
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 does Alice produce in the Nash equilibrium?A) 2,000
B) 1,333.33
C) 800
D) 4,000
Question
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 Qdis 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 does Kate produce in the Nash equilibrium?
A) 2,000
B) 1,333.33
C) 800
D) 4,000
where P is the price of a cubic yard of concrete and Qdis 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 does Kate produce in the Nash equilibrium?A) 2,000
B) 1,333.33
C) 800
D) 4,000
Question
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. What is total output in the Nash equilibrium?
A) 4,000
B) 2,666.66
C) 1,600
D) 8,000
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
Question
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. What is the market price in the Nash equilibrium?
A) $80
B) $86.67
C) $100
D) $93.34
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 the market price in the Nash equilibrium?A) $80
B) $86.67
C) $100
D) $93.34
Question
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
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
Question
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 Qdis 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 more profit does a monopolist earn compared to the joint profit each producer earns in the Nash equilibrium?
A) $2,213.38
B) $0
C) $11,106.69
D) $2,000
where P is the price of a cubic yard of concrete and Qdis 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 more profit does a monopolist earn compared to the joint profit each producer earns in the Nash equilibrium?A) $2,213.38
B) $0
C) $11,106.69
D) $2,000
Question
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. What is the amount of the deadweight loss?
A) $8,893.38
B) $6.67
C) $1,333,33
D) $4,446.69
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 the amount of the deadweight loss?A) $8,893.38
B) $6.67
C) $1,333,33
D) $4,446.69
Question
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. What is the difference in the deadweight loss compared to a monopoly in this market?
A) $666.66
B) $2,000
C) $5,553.31
D) $10,000
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 the difference in the deadweight loss compared to a monopoly in this market?A) $666.66
B) $2,000
C) $5,553.31
D) $10,000
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PP = $0.75, what is Coke's demand function?
A)
B)
C)
D)
and where QC and QP and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PP = $0.75, what is Coke's demand function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PC = $0.6, what is Pepsi's demand function?
A)
B)
C)
D)
and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PC = $0.6, what is Pepsi's demand function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's inverse demand function?
A)
B)
C)
D)
and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's inverse demand function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's inverse demand function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's inverse demand function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's best response function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's best response function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day.PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's best response function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day.PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's best response function?A)
B)
C)
D)
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Pepsi?
A) $.016
B) $0.45
C) $0.53
D) $0.38
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Pepsi?A) $.016
B) $0.45
C) $0.53
D) $0.38
Question
Suppose the daily demand for Coke and Pepsi in a small city are given by 
and 
where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Coke?
A) $.016
B) $0.45
C) $0.53
D) $0.38
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Coke?A) $.016
B) $0.45
C) $0.53
D) $0.38
Question
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. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?
A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
Question
45 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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit maximizing output?
A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit maximizing output?A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
Question
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. Suppose Kate enters the market first and chooses her output before Alice. Given market demand, what is the market price per cubic yard?
A) $80
B) $85
C) $90
D) $95
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. Suppose Kate enters the market first and chooses her output before Alice. Given market demand, what is the market price per cubic yard?A) $80
B) $85
C) $90
D) $95
Question
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 Qdis the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit?
A) $10,000
B) $5,000
C) $20,000
D) $15,000
where P is the price of a cubic yard of concrete and Qdis the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit?A) $10,000
B) $5,000
C) $20,000
D) $15,000
Question
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?
A) $10,000
B) $5,000
C) $20,000
D) $15,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?A) $10,000
B) $5,000
C) $20,000
D) $15,000
Question
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 andQd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Kate's profit when she enters the market first compared to when Kate and Alice choose their outputs simultaneously?
A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
where P is the price of a cubic yard of concrete andQd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Kate's profit when she enters the market first compared to when Kate and Alice choose their outputs simultaneously?A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
Question
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. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Alice's profit when Kate enters the market first, compared to when they simultaneously select their outputs?
A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
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. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Alice's profit when Kate enters the market first, compared to when they simultaneously select their outputs?A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
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Deck 12: Oligopoly
1
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. What is Kate's inverse residual demand function?
A)
B)
C)
D)
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 Kate's inverse residual demand function?A)
B)
C)
D)
2
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. What is Alice's inverse residual demand function?
A)
B)
C)
D)
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 Alice's inverse residual demand function?A)
B)
C)
D)
3
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 andQd 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 Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?
A)
B)
C)
D)
where P is the price of a cubic yard of concrete andQd 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 Alice produces 5,000 cubic yards per year, what is Kate's inverse demand function?A)
B)
C)
D)
4
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. If Kate produces 10,000 cubic yards per year, what is Alice's inverse demand function?
A)
B)
C)
D)
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)
B)
C)
D)
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5
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. What is Alice's marginal revenue function?
A)
B)
C)
D)
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 Alice's marginal revenue function?A)
B)
C)
D)
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6
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 andQd 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 Kate's marginal revenue function?
A)
B)
C)
D)
where P is the price of a cubic yard of concrete andQd 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 Kate's marginal revenue function?A)
B)
C)
D)
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7
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. Find Alice's best response function.
A)
B)
C)
D)
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. Find Alice's best response function.A)
B)
C)
D)
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8
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. Find Kate's best response function.
A)
B)
C)
D)
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. Find Kate's best response function.A)
B)
C)
D)
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9
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 does Alice produce in the Nash equilibrium?
A) 2,000
B) 1,333.33
C) 800
D) 4,000
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 does Alice produce in the Nash equilibrium?A) 2,000
B) 1,333.33
C) 800
D) 4,000
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10
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 Qdis 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 does Kate produce in the Nash equilibrium?
A) 2,000
B) 1,333.33
C) 800
D) 4,000
where P is the price of a cubic yard of concrete and Qdis 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 does Kate produce in the Nash equilibrium?A) 2,000
B) 1,333.33
C) 800
D) 4,000
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11
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. What is total output in the Nash equilibrium?
A) 4,000
B) 2,666.66
C) 1,600
D) 8,000
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
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12
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. What is the market price in the Nash equilibrium?
A) $80
B) $86.67
C) $100
D) $93.34
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 the market price in the Nash equilibrium?A) $80
B) $86.67
C) $100
D) $93.34
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13
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
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
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14
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 Qdis 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 more profit does a monopolist earn compared to the joint profit each producer earns in the Nash equilibrium?
A) $2,213.38
B) $0
C) $11,106.69
D) $2,000
where P is the price of a cubic yard of concrete and Qdis 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 more profit does a monopolist earn compared to the joint profit each producer earns in the Nash equilibrium?A) $2,213.38
B) $0
C) $11,106.69
D) $2,000
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15
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. What is the amount of the deadweight loss?
A) $8,893.38
B) $6.67
C) $1,333,33
D) $4,446.69
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 the amount of the deadweight loss?A) $8,893.38
B) $6.67
C) $1,333,33
D) $4,446.69
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16
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. What is the difference in the deadweight loss compared to a monopoly in this market?
A) $666.66
B) $2,000
C) $5,553.31
D) $10,000
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 the difference in the deadweight loss compared to a monopoly in this market?A) $666.66
B) $2,000
C) $5,553.31
D) $10,000
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17
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PP = $0.75, what is Coke's demand function?
A)
B)
C)
D)
and where QC and QP and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PP = $0.75, what is Coke's demand function?A)
B)
C)
D)
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18
Suppose the daily demand for Coke and Pepsi in a small city are given by and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PC = $0.6, what is Pepsi's demand function?
A)
B)
C)
D)
and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. If PC = $0.6, what is Pepsi's demand function?A)
B)
C)
D)
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19
Suppose the daily demand for Coke and Pepsi in a small city are given by and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's inverse demand function?
A)
B)
C)
D)
and whereQC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's inverse demand function?A)
B)
C)
D)
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20
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's inverse demand function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's inverse demand function?A)
B)
C)
D)
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21
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's best response function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Pepsi's best response function?A)
B)
C)
D)
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22
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day.PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's best response function?
A)
B)
C)
D)
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day.PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is Coke's best response function?A)
B)
C)
D)
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23
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Pepsi?
A) $.016
B) $0.45
C) $0.53
D) $0.38
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Pepsi?A) $.016
B) $0.45
C) $0.53
D) $0.38
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24
Suppose the daily demand for Coke and Pepsi in a small city are given by and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Coke?
A) $.016
B) $0.45
C) $0.53
D) $0.38
and where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can. What is the Nash equilibrium price for Coke?A) $.016
B) $0.45
C) $0.53
D) $0.38
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25
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. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?
A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit maximizing output?A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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26
45 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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit maximizing output?
A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit maximizing output?A) 2,000
B) 1,333.34
C) 1,000
D) 4,000
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27
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. Suppose Kate enters the market first and chooses her output before Alice. Given market demand, what is the market price per cubic yard?
A) $80
B) $85
C) $90
D) $95
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. Suppose Kate enters the market first and chooses her output before Alice. Given market demand, what is the market price per cubic yard?A) $80
B) $85
C) $90
D) $95
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28
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 Qdis the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit?
A) $10,000
B) $5,000
C) $20,000
D) $15,000
where P is the price of a cubic yard of concrete and Qdis the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit?A) $10,000
B) $5,000
C) $20,000
D) $15,000
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29
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?
A) $10,000
B) $5,000
C) $20,000
D) $15,000
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. Suppose Kate enters the market first and chooses her output before Alice. What is Alice's profit?A) $10,000
B) $5,000
C) $20,000
D) $15,000
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30
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 andQd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Kate's profit when she enters the market first compared to when Kate and Alice choose their outputs simultaneously?
A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
where P is the price of a cubic yard of concrete andQd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Kate's profit when she enters the market first compared to when Kate and Alice choose their outputs simultaneously?A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
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31
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. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Alice's profit when Kate enters the market first, compared to when they simultaneously select their outputs?
A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
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. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Alice's profit when Kate enters the market first, compared to when they simultaneously select their outputs?A) $11,106.69
B) $5,000
C) $1106.69
D) -$3893.31
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