The obligations and prohibitions present in a contract between a franchiser and the franchisee are called vertical restraints

The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A decrease in the price of sugar used to make soft drinks is shown as a movement from point a to a point such as

A) none of the points that are illustrated. B) point b. C) point c. D) point d.

Suppose Cournot duopolist firms operate with each having a cost of 30qi (i = 1,2 ) so that each firm's marginal cost is 30. The inverse market demand curve is P = 120 - Q where Q = q1 + q2. Suppose there were no barriers to entry and firms continued to enter so long as there were positive economic profits. At the Nash-Cournot equilibrium, the total output, Q, is

A) 30. B) 45. C) 60. D) 90.