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. Which of the following best represents Kate's inverse residual demand function?
A. P(QK) = (100 - 0.005QA) - 0.005QK
B. P(QK) = (100 - 0.005QK) - 0.005QA
C. P(QK) = (200 - 0.005QA) - 0.005QK
D. P(QK) = (200 - 0.005QA) - 0.005QA
A. P(QK) = (100 - 0.005QA) - 0.005QK
Economics
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Refer to Table 9-3. If the required reserve ratio is 10%, what is the maximum amount of new loans that Alpha-Beta can create?
A) $25 million B) $40 million C) $60 million D) $75 million
Economics
If in a perfectly competitive industry, the market price facing a firm is below its average total cost but above average variable cost at the output where marginal cost equals marginal revenue
A) the industry supply will not change. B) firms are breaking even. C) some existing firms will exit the industry. D) new firms are attracted to the industry.
Economics