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Suppose there are two firms, Boors and Cudweiser, each selling identical- tasting nonalcoholic beer. Consumers of this beer have no brand loyalty so market demand can be expressed as P = 5-0.001(QB+ Qc). Boors marginal revenue function can be written MRB = 5 -0.001(2QB + Qc) (and symmetrically for Cudweiser). Boors operates with out of date technology and has constant cost of (MC = AC) $2 per unit where as Cudweiser has constant cost of $1 per unit. How many "units" of beer will Cudweiser produce?

Suppose there are two firms, Boors and Cudweiser, each selling identical- tasting nonalcoholic beer. Consumers of this beer have no brand loyalty so market demand can be expressed as P = 5-0.001(QB+ Qc). Boors marginal revenue function can be written MRB = 5 -0.001(2QB + Qc) (and symmetrically for Cudweiser). Boors operates with out of date technology and has constant cost of (MC = AC) $2 per unit where as Cudweiser has constant cost of $1 per unit. How many "units" of beer will Cudweiser produce?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose there are two firms, Boors and Cudweiser, each selling identical- tasting nonalcoholic beer. Consumers of this beer have no brand loyalty so market demand can be expressed as P = 5-0.001(QB + Qc). Boors marginal revenue function can be written MRB = 5-0.001(2QB+Qc) (and symmetrically for Cudweiser). Boors operates with out of date technology and has constant cost of (MC = AC) $2 per unit where as Cudweiser has constant cost of $1 per unit. How many "units" of beer will Cudweiser produce? Select one: O2,333 O 1,667 O 667 O 3,000
Transcribed Image Text:Suppose there are two firms, Boors and Cudweiser, each selling identical- tasting nonalcoholic beer. Consumers of this beer have no brand loyalty so market demand can be expressed as P = 5-0.001(QB + Qc). Boors marginal revenue function can be written MRB = 5-0.001(2QB+Qc) (and symmetrically for Cudweiser). Boors operates with out of date technology and has constant cost of (MC = AC) $2 per unit where as Cudweiser has constant cost of $1 per unit. How many "units" of beer will Cudweiser produce? Select one: O2,333 O 1,667 O 667 O 3,000
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