The Market Inverse Demand Curve for Thrust Bearings Is P

question 114

Multiple Choice

The market inverse demand curve for thrust bearings is P = 15 - 1.5Q, where Q is measured in hundreds of bearings per day and P is the price per bearing. The marginal cost is $3. Suppose two firms, which are Bertrand competitors, produce identical thrust bearings for this market. In this case, the market quantity is ____.

• A) 900
• B) 800
• C) 700
• D) 600

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Definitions:

Thomas Malthus

An English economist and demographer known for his theory that population growth would outpace agricultural production, leading to widespread famine and hardship.

Pestilence

A fatal epidemic disease, particularly bubonic plague.

Geometrically

Pertaining to geometry; in a manner that relates to the properties, measurements, and relationships of points, lines, angles, surfaces, and solids.

Arithmetically

In a manner related to arithmetic; involving the basic operations of mathematics, such as addition, subtraction, multiplication, and division.