Suppose That the Duopolists Carl and Simon in Problem 1

question 6

Multiple Choice

Suppose that the duopolists Carl and Simon in Problem 1 face a demand function for pumpkins of Q = 16,400 - 400P, where Q is the total number of pumpkins that reach the market and P is the price of pumpkins. Suppose further that each farmer has a constant marginal cost of $1 for each pumpkin produced. If Carl believes that Simon is going to produce Q_s pumpkins this year, then the reaction function tells us how many pumpkins Carl should produce in order to maximize his profits. Carl's reaction function is R_C(Q_s) =

• A) 8,000 -.
• B) 16,400 - 400Q_s.
• C) 16,400 - 800Q_s.
• D) 4,000 -.
• E) 12,000 - Q_s.

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Definitions:

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.

Insure The House

Entering into a policy agreement with an insurance company to provide protection against damages or losses to one's home, typically against risks like fire, theft, or natural disasters.

Insurable Interest

A stake in the preservation of a subject against loss or damage, legally necessary for an individual to purchase insurance on a life or property.

Property Insurance

A type of insurance covering loss or damage to physical property through accidents, theft, or natural disasters.