The Inverse Demand for Designer Blankets Is Given by P

question 149

Multiple Choice

The inverse demand for designer blankets is given by P = 40 - 0.01Q, where P is the price per blanket and Q is the total number of blankets brought to market. Two shops in the market supply specialty blankets. Shop 1's cost function is given by C₁ = 0.02q₁², where q₁ is the number it brings to market. Shop 2's cost function is given by C₂ = 0.02q₂², where q₂ is the number it brings to market. Given that the two shops compete by setting output (Cournot) , the equilibrium market quantity is ____.

• A) 532.34
• B) 571.42
• C) 1,064.68
• D) 1,142.84

---

Definitions:

Three-Person Trip

An excursion or journey undertaken by three individuals together.

Binge Eating

An eating disorder characterized by recurrent episodes of eating large quantities of food, often quickly and to the point of discomfort, accompanied by a feeling of loss of control during the episode.

Open Floor Plan

An architectural and interior design concept that removes barriers such as walls between different functional areas, such as living, dining, and kitchen spaces.

Public Shared Spaces

Areas accessible to all members of a community, such as parks, plazas, libraries, that are designed for public use and enjoyment.