Kate and Alice are small-town ready-mix concrete duopolists.The market demand function is Qd = 20,000 - 200P,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 more profit would a monopolist earn compared to the combined profit earned by the two duopoly firms together in the Nash equilibrium?
A) $180,000
B) $2,222.22
C) $11,111.11
D) $9,333.33
Correct Answer:
Verified
Q26: When consumers do not view similar products
Q27: Suppose the daily demand for Coke and
Q28: In the infinitely-repeated Bertrand model:
A) firms play
Q29: Suppose the daily demand for Coke and
Q30: Suppose the daily demand for Coke and
Q32: Suppose the daily demand for Coke and
Q33: Kate and Alice are small-town ready-mix concrete
Q34: All else equal,in which oligopolistic market below
Q35: Kate and Alice are small-town ready-mix concrete
Q36: In an oligopolistic market,:
A) the larger the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents