Suppose That Ngoc and Kalene Are Duopolists

question 144

Multiple Choice

Suppose that Ngoc and Kalene are duopolists. Ngoc is producing 580 units of output, and Kalene is producing 880 units of output. When Kalene produces 880 units, Ngoc maximizes profit by producing 580 units. When Ngoc produces 580 units of output, Kalene maximizes profit by producing 880 units. Ngoc and Kalene are

• A)pricing at the minimum of marginal cost.
• B)in a competitive market.
• C)at a Nash equilibrium.
• D)engaging in monopoly pricing.

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Definitions:

Dividend Payment

A dividend payment is a distribution of a portion of a company's earnings to its shareholders, typically made in cash or additional stock.

Journal Entry

The accounting method for expressing the effects of a transaction on accounts in a debits-equal-credits format.

Noncumulative

Noncumulative refers to dividends on preferred stock that, if not declared or paid in a given period, do not accumulate and are not owed to shareholders in future periods.