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Kate and Alice Are Small-Town Ready-Mix Concrete Duopolists

Question 16

Multiple Choice

Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is where P is the price of a cubic yard of concrete and Q<sup>d</sup> is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is total output in the Nash equilibrium? A) 4,000 B) 2,666.66 C) 1,600 D) 8,000 where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. What is total output in the Nash equilibrium?


A) 4,000
B) 2,666.66
C) 1,600
D) 8,000

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