An Industry Faces the Demand Curve Q = 400 -

question 71

Multiple Choice

An industry faces the demand curve Q = 400 - 4P, where each firm produces an identical good at a constant marginal cost of $10. The Bertrand equilibrium market quantity is ____.

• A) 400
• B) 360
• C) 200
• D) 180

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Definitions:

Breakfast Cereal

A type of food made from processed grains, often eaten as the first meal of the day.

Perfectly Competitive

A market system where there are numerous buyers and sellers, unrestricted entry and departure, and a uniform product.

Sellers

Entities or individuals that make available goods or services for purchasing within the market.

Price Taker

An economic actor that accepts the prevailing market prices and lacks the power to influence those prices due to its small market share.