A Duopoly Faces the Demand Curve D(p) = 30 -

question 54

Multiple Choice

A duopoly faces the demand curve D(p) = 30 - .5p. Both firms in the industry have a total cost function given by C(q) = 4q. Suppose that firm 1 is a Stackelberg leader in choosing its quantity first. Firm 1's profit function can be written as

• A) q₁ = 14 - .5q₂.
• B) q₂ = 14 - .5q₁.
• C) 28_q1 - q²₁.
• D) 56_q1 - q²₁.
• E) 60_q - q².

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Definitions:

Perishable Asset

An asset that has a limited lifespan or a quality that deteriorates over time, often requiring specialized inventory management strategies.

Market Segments

Divisions within a market defined by distinct characteristics or preferences of consumer groups, allowing for targeted marketing strategies.

Product Attributes

Characteristics or features of a product that can include quality, size, functionality, and design.

Supply Chain Profitability

The overall financial gain generated through the management and coordination of the supply chain, encompassing all stages from material sourcing to product delivery to the end customer.