Suppose That the Market Demand Curve for Bean Sprouts Is

question 1

Multiple Choice

Suppose that the market demand curve for bean sprouts is given by P = 820 - 2Q, where P is the price and Q is the total industry output. Suppose that the industry has two firms, a Stackelberg leader and a follower. Each firm has a constant marginal cost of $20 per unit of output. In equilibrium, total output by the two firms will be

• A)200
• B)100
• C)300
• D)300.
• E) 50.

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Definitions:

Causal Relationship

The connection between two variables where a change in one directly causes a change in the other.

Natural Selection

A basic process of evolution in which creatures that are more suited to their surroundings are more likely to survive and have a greater number of descendants.

A Priori

Knowledge or justification that is independent of experience, often based on logical deduction.

Genetic Differences

Variations in the DNA sequences among individuals, which contribute to the biological diversity and complexity of organisms, affecting traits from physical appearance to susceptibility to certain diseases.