Kate and Alice Are Small-Town Ready-Mix Concrete Duopolists

question 4

Multiple Choice

Kate and Alice are small-town ready-mix concrete duopolists.The market demand function is Q^d = 20,000 - 200P,where P is the price of a cubic yard of concrete and Q^d is the number of cubic yards demanded per year.Marginal cost is $80 per cubic yard.The Cournot model describes the competition in this market.How much more profit would a monopolist earn compared to the combined profit earned by the two duopoly firms together in the Nash equilibrium?

• A) $180,000
• B) $2,222.22
• C) $11,111.11
• D) $9,333.33

Comprehend the components and preparation of a master budget.

Calculate and interpret the budgeted net operating income.

Assess the impact of budgeting on financial decision-making.

Analyze the components of a manufacturing budget, including direct materials, direct labor, and manufacturing overhead.

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Definitions:

Yield To Maturity

A bond's expected rate of return if held until its maturity date, calculated based on its current market price, coupon rate, and time to maturity.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, set by the issuing company at the time of issue.

Coupon Bond

A debt security issued by corporations or governments that pays periodic interest payments based on a fixed interest rate until the bond reaches its maturity date, at which point the principal is repaid.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match the market value.