North Bend Currently Has One McDonald's Fast-Food Franchise

North Bend currently has one McDonald's fast-food franchise.Demand for hamburgers in North Bend is given by Q = 400 - 10P.Any McDonald's franchise has costs of C = 60 + 3Q for producing Q hamburgers.If a second McDonald's franchise were to move into North Bend (and both behaved as duopolists) , the profit of the original McDonald's would fall from

A) $3,362.50 to $2,922.22.
B) $3,977.50 to $1,891.11.
C) $3,422.50 to $2,922.22.
D) $3,362.50 to $1,461.11.
E) $3,422.50 to $2,982.22.

Correct Answer:

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