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

---

Definitions:

Prevent

To stop something from happening or to hinder certain actions by taking proactive measures.

Stock

Shares representing ownership in a corporation, entitling the shareholder to a portion of the company’s profits and assets.

Testator

An individual who has made a will to dictate how their estate should be managed and distributed after their death.

Valid Will

A legal document that has satisfied all legal requirements in a given jurisdiction, effectively ensuring its enforceability in the disposition of the testator's estate after death.