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Kate and Alice Are Small-Town Ready-Mix Concrete Duopolists

Question 10

Multiple Choice

Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is 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 Q<sup>d</sup>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 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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