In Problem 5, Suppose That Grinch and Grubb Go into the Wine

question 14

Multiple Choice

In Problem 5, suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult to grow. The demand for wine is given by p = $360 - .2Q, where p is the price and Q is the total quantity sold. The industry consists of just the two Cournot duopolists, Grinch and Grubb. Imports are prohibited. Grinch has constant marginal costs of $75 and Grubb has marginal costs of $15. How much Grinch's output in equilibrium?

• A) 562.50
• B) 187.50
• C) 750
• D) 375
• E) 1,125

Distinguish between the statements of fact and opinion in the context of economic development.

Understand the factors affecting productivity growth in the 1990s.

Distinguish between true and false statements regarding education and workforce skills.

Identify factors that have positively and negatively affected economic growth.

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A future point in time referenced from the present moment, often used in planning and projections.

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The fraction of a loan incurred as interest cost to the borrower, often expressed annually as a percentage of the total loan amount still due.

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