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
Correct Answer:
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