QUESTION 4 Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows: P = 53 - Q. The marginal cost to produce this new drink is $5. What price would this new drink sell for if the market was a Stackelberg duopoly? A. $17 B. $21 C. $29 D. $16.50
QUESTION 4 Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand curve is linear and is given as follows: P = 53 - Q. The marginal cost to produce this new drink is $5. What price would this new drink sell for if the market was a Stackelberg duopoly? A. $17 B. $21 C. $29 D. $16.50
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 11SQP
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![QUESTION 4
Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand
curve is linear and is given as follows: P = 53 - Q. The marginal cost to produce this new drink is $5.
What price would this new drink sell for if the market was a Stackelberg duopoly?
A. $17
В. $21
C. $29
D. $16.50](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb9a491c5-8cf8-4200-9232-16eb90b9511a%2Fae056f31-c70e-4949-a6bb-1838ba987e33%2Flmplaoo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 4
Suppose a stream is discovered whose water has remarkable healing powers. You decide to bottle the liquid and sell it. The market demand
curve is linear and is given as follows: P = 53 - Q. The marginal cost to produce this new drink is $5.
What price would this new drink sell for if the market was a Stackelberg duopoly?
A. $17
В. $21
C. $29
D. $16.50
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