The Inverse Demand for Tacos Is Given by P =

question 153

Multiple Choice

The inverse demand for tacos is given by P = 10 - 0.02Q, where P is the price per taco and Q is the total number of tacos brought to market. There are two taco shops in the local market. Shop 1's cost function is given by C₁ = 0.01q₁², where q₁ is the number of tacos it brings to market. Shop 2's cost function is given by C₂ = 0.01q₂², where q₂ is the number of tacos it brings to market. Assume the two shops compete by setting output (Cournot) . Let Q = q₁ + q₂. Shop 2 produces ____ to maximize profit.

• A) 250
• B) 200
• C) 150
• D) 125

Recognize different types of mergers and ventures, and their strategic importance in business expansion and competitiveness.

Identify characteristics that define small businesses and differentiate them from larger firms.

Acknowledge the role of technology and online resources in enhancing the competitiveness of small businesses.

Understand the role of innovation in business success and its relation to business size.

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Definitions:

Means-End Analysis

A problem-solving method that involves identifying the difference between the current state and the goal state, then creating and taking steps to reduce the difference.

Current State

The existing condition or situation of a system, organization, or individual at a particular time.

Eventual Goal

The ultimate aim or objective that is intended to be achieved in the long term, following the completion of all interim steps or phases.

Mixed Numeral

A number made up of a whole number and a fraction, such as 3 1/2.