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

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 6SQP

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