Two Firms Share a Market with Demand Curve Q=90-0

question 31

Multiple Choice

Two firms share a market with demand curve Q=90-0.5P. Each has cost function C(q) =900+q². Suppose that each firm maximizes its profit taking the other firm's production choice as given. What is the profit of each firm?

• A)618.75
• B)675.50
• C)600
• D)900

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Definitions:

Claim Message

A formal communication in which an individual or organization lays out a problem and requests action or compensation; similar to a customer's claim but can also apply in insurance and other professional contexts.

Unethical Communicators

Individuals or entities that engage in dishonest or manipulative communication practices, violating ethical standards.

Ethical Communicators

Individuals who adhere to principles of honesty, clarity, accuracy, and respect in all forms of communication.

Deceive

To intentionally cause someone to believe something that is not true, typically in order to gain some personal advantage.