Scenario 2: 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 = 30-Q The marginal cost to produce this new drink is $3. Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly? OA. $13.50 OB. $9 OC. $12 OD. $3 OE. None of the above D
Scenario 2: 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 = 30-Q The marginal cost to produce this new drink is $3. Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly? OA. $13.50 OB. $9 OC. $12 OD. $3 OE. None of the above D
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Scenario 2:
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 = 30-Q
The marginal cost to produce this new drink is $3.
Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly?
OA. $13.50
OB. $9
OC. $12
O D. $3
OE. None of the above
D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F48c7dc02-2853-4344-ad85-f1248a4f50ba%2Fa4b505a4-eddd-4f24-bf53-b7651c535522%2Fpuvupvj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Scenario 2:
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 = 30-Q
The marginal cost to produce this new drink is $3.
Refer to Scenario 2. What will be the price of this new drink in the long run if the industry is a Bertrand duopoly?
OA. $13.50
OB. $9
OC. $12
O D. $3
OE. None of the above
D
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