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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need help with #111 please
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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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