The Inverse Demand Function for Fuzzy Dice Is P =

question 45

Multiple Choice

The inverse demand function for fuzzy dice is p = 20 - q. There are constant returns to scale in this industry with unit costs of $8. Which of the following sets of statements is completely true?

• A) Monopoly output is 6. Cournot duopoly total output is 8. A Stackelberg leader's output is 8.
• B) Monopoly output is 8. Cournot duopoly total output is 8. A Stackelberg leader's output is 8.
• C) Monopoly output is 6. Cournot duopoly total output is 6. A Stackelberg follower's output is 3.
• D) Monopoly output is 6. Cournot duopoly total output is 8. A Stackelberg follower's output is 3.
• E) Monopoly output is 6. Cournot duopoly total output is 8. A Stackelberg follower's output is 4.

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Outlay

The amount of money spent on a particular expense or investment.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Cash Inflows

Money or other forms of financial assets that come into a company, contributing to its total revenue.