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.

Interpret and assess tax systems, including negative income tax.

Explain the role of labor market economics in discussions about minimum wage and employment.

Understand the concepts of life cycle and permanent income hypotheses in relation to income inequality.

Discuss the arguments for and against the redistribution of income.

---

Definitions:

1946

A year marked by significant global and social changes following the end of World War II, including the beginning of the Cold War and the establishment of the United Nations.

To Secure These Rights

A landmark report from 1947 by the President's Committee on Civil Rights, recommending measures to ensure equal rights and eliminate discrimination.

Black Americans

A term referring to Americans with ancestry from black racial groups of Africa, often used interchangeably with African Americans.