Suppose That the Inverse Demand for Bean Sprouts Is Given

question 19

Multiple Choice

Suppose that the inverse demand for bean sprouts is given by P(Y) = 750 - 2Y and the total cost of producing Y units for any firm is TC(Y) = 30Y. If the industry consists of two Cournot duopolists, then in equilibrium each firm's production is

• A) 60 units.
• B) 120 units.
• C) 180 units.
• D) 90 units.
• E) 93.75 units.

---

Definitions:

Marketing Department

A division within a company that focuses on strategies and tactics to promote products or services to the target audience.

Personal Computer

A compact, relatively inexpensive computer designed for individual use, capable of running general-purpose applications and accessing the internet.

Cost Per Unit

The total cost to produce a single unit of product, including fixed and variable costs.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and insurance premiums.