In Problem 5, suppose that Grinch andGrubb go into the wine business in a smallcountry where wine is difficult to grow. Thedemand for wine is given by p = $480 - .2Q,where p is the price and Q is the totalquantity sold. The industry consists of justthe two Cournot duopolists, Grinch andGrubb. Imports are prohibited. Grinch hasconstant marginal costs of $6 and Grubb hasmarginal costs of $45. How much Grinch'soutput in equilibrium?a) 1,350b) 2,025c) 337.50d) 675 country where wine is difficult to grow. Thedemand for wine is given by p = $480 - .2Q,where p is the price and Q is the totalquantity sold. The industry consists of justthe two Cournot duopolists, Grinch andGrubb. Imports are prohibited. Grinch hasconstant marginal costs of $6 and Grubb hasmarginal costs of $45. How much Grinch'soutput in equilibrium?|a) 1,350b) 2,025c) 337.50d) 675e) 1,012.50

Under cournot duopoly each there are 2 firms, each of the firm had the objective of finding the…

Answered: marginal costs of $45. How much…

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marginal costs of $45. How much Grinch's output in equilibrium? Oa) 1,350 Ob) 2,025 c) 337.50 O d) 675

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Concept explainers

Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.

Question

In Problem 5, suppose that Grinch and
Grubb go into the wine business in a small
country where wine is difficult to grow. The
demand for wine is given by p = $480 - .2Q,
where p is the price and Q is the total
quantity sold. The industry consists of just
the two Cournot duopolists, Grinch and
Grubb. Imports are prohibited. Grinch has
constant marginal costs of $6 and Grubb has
marginal costs of $45. How much Grinch's
output in equilibrium?
a) 1,350
b) 2,025
c) 337.50
d) 675

country where wine is difficult to grow. The
demand for wine is given by p = $480 - .2Q,
where p is the price and Q is the total
quantity sold. The industry consists of just
the two Cournot duopolists, Grinch and
Grubb. Imports are prohibited. Grinch has
constant marginal costs of $6 and Grubb has
marginal costs of $45. How much Grinch's
output in equilibrium?
|
a) 1,350
b) 2,025
c) 337.50
d) 675
e) 1,012.50

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