In Bertrand Competition with Differentiated Goods, the Demand Curve for Bags

question 61

Multiple Choice

In Bertrand competition with differentiated goods, the demand curve for bags of Wilson tennis balls is q_W = 80 - 4P_W + 2P_D , and the demand curve for bags of Dunlop tennis balls is q_D = 80 - 2P_D + P_W. Two firms both have zero marginal costs. How many bags of tennis balls does each firm produce?

• A) q_W = 44; q_D = 44
• B) q_W = 64; q_D = 48
• C) q_W = 16; q_D = 24
• D) q_W = 38; q_D = 32

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Definitions:

Official Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country, used to identify individuals and households in need of assistance.

Minimum Food Bundle

The minimum set of food items required to meet the nutritional needs of an individual or family, often used in assessments of poverty and food security.

Department of Agriculture

A government body responsible for developing and executing policies on farming, agriculture, and food.

African-Americans

A racial or ethnic group in the United States with ancestry from any of the black racial groups of Africa.