Use the following to answer questions (1) - (14): Suppose the local market for flat glass, considered a homogeneous product, consists of two firms, A and B. The market demand is given as: Q = 40 - 2P, where Q is the market quantity and P is the price. A's total cost (TC,) is: TC, = 6°94, where q, is the quantity produced and sold by A B's total cost (TC,) is: TC, = 8qg, where qų is the quantity produced and sold by B [1] The market structure these two firms operate in is definitely not monopolistic competition. А. True В. False [2] Behaving as Cournot competitors, at the Nash equilibrium A produces a quantity closest in value to: A. 9 В. С. D. 11 13 15 [3] Behaving as Cournot competitors, at the Nash equilibrium the market quantity is closest in value to: А. 10 В. 13 С. 17 D. 20 [4] Behaving as Cournot competitors, at the Nash equilibrium the market price is closest in value to: А. В. 11 С. 15 D. 19 [5] Behaving as Cournot competitors, at the Nash equilibrium B's profit is closest in value to: А. 8. В. 16 С. D. 20 26 [6] Behaving as Cournot competitors, at the Nash equilibrium A's profit is closest in value to: A. 8. В. С. D. 16 20 26
Use the following to answer questions (1) - (14): Suppose the local market for flat glass, considered a homogeneous product, consists of two firms, A and B. The market demand is given as: Q = 40 - 2P, where Q is the market quantity and P is the price. A's total cost (TC,) is: TC, = 6°94, where q, is the quantity produced and sold by A B's total cost (TC,) is: TC, = 8qg, where qų is the quantity produced and sold by B [1] The market structure these two firms operate in is definitely not monopolistic competition. А. True В. False [2] Behaving as Cournot competitors, at the Nash equilibrium A produces a quantity closest in value to: A. 9 В. С. D. 11 13 15 [3] Behaving as Cournot competitors, at the Nash equilibrium the market quantity is closest in value to: А. 10 В. 13 С. 17 D. 20 [4] Behaving as Cournot competitors, at the Nash equilibrium the market price is closest in value to: А. В. 11 С. 15 D. 19 [5] Behaving as Cournot competitors, at the Nash equilibrium B's profit is closest in value to: А. 8. В. 16 С. D. 20 26 [6] Behaving as Cournot competitors, at the Nash equilibrium A's profit is closest in value to: A. 8. В. С. D. 16 20 26
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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