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.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
Correct Answer:
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