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111) 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 Q 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 does Alice produce in the Nash equilibrium? A) 2,000 B) 1,333.33 C) 800 D) 4,000

111) 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 Q 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 does Alice produce in the Nash equilibrium? A) 2,000 B) 1,333.33 C) 800 D) 4,000

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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8:48 × 20 m ZONE Problem Set... Not saved yet . 64% +0 demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Q 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 gives Kate's best response function? A) QK = 200 -0.01Qk B) QK = 100 - 0.005 QA C) QK = 2,000 - 0.5QK QK = 2,000 - 0.5QA D) A) 2,000 B) 1,333.33 C) 800 D) 4,000 111) Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Q = 20,000 - 200P, where P is the price of a cubic yard of concrete and Q 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 does Alice produce in the Nash equilibrium? 112) Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qª = 20,000 - 200P, where P is the price of a cubic yard of concrete and O is the number of cubic
Transcribed Image Text:8:48 × 20 m ZONE Problem Set... Not saved yet . 64% +0 demand function is Qd = 20,000 - 200P, where P is the price of a cubic yard of concrete and Q 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 gives Kate's best response function? A) QK = 200 -0.01Qk B) QK = 100 - 0.005 QA C) QK = 2,000 - 0.5QK QK = 2,000 - 0.5QA D) A) 2,000 B) 1,333.33 C) 800 D) 4,000 111) Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Q = 20,000 - 200P, where P is the price of a cubic yard of concrete and Q 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 does Alice produce in the Nash equilibrium? 112) Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qª = 20,000 - 200P, where P is the price of a cubic yard of concrete and O is the number of cubic
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