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

Question 2

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. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit? A) $10,000 B) $5,000 C) $20,000 D) $15,000 where P is the price of a cubic yard of concrete and Qdis the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is Kate's profit?


A) $10,000
B) $5,000
C) $20,000
D) $15,000

Correct Answer:

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