Ann and Bruce Each Own a Pizza Store in Frostbite

question 5

Multiple Choice

Ann and Bruce each own a pizza store in Frostbite Falls, Minnesota. Demand for pizza is given by Q = 200 - 10P. Having the only two pizza stores in Frostbite Falls, they attempt to profitably split the market without violating the Sherman Antitrust Act. Each has the cost function C = 50 + 5Q. If Ann and Bruce behave as duopolists, each earns a profit of

• A) $0.
• B) $200.
• C) $500.
• D) $500
• E) $562.50.

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Definitions:

Empowerment Gap

The disparity between groups in their access to resources and opportunities that allow for empowerment and decision-making.

Service Gap

Results when a service fails to meet the expectations that customers have about how it should be delivered.

Knowledge Gap

The difference in understanding or information between individuals or groups, especially in relation to access or comprehension of specific subject matter.

Tangibles

Physical items or goods that can be seen, touched, and measured, as opposed to services or digital products.