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?
A. $10,000
B. $5,000
C. $20,000
D. $15,000
B. $5,000
Economics
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Refer to Figure 2-8. If Vidalia chooses to produce 50 dozen roses, how many orchids can it produce to maximize production?
A) 20 dozen orchids B) 40 dozen orchids C) 60 dozen orchids D) 80 dozen orchids
Economics
If consumption spending is larger than disposable income,
a. saving is positive. b. dissaving occurs. c. saving is exactly zero. d. a depression results. e. this cannot occur.
Economics