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

Question 30

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 andQ<sup>d</sup> 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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