Suppose the Demand for Pizza in a Small Isolated Town

question 48

Essay

Suppose the demand for pizza in a small isolated town is p = 10 - Q.There are only two firms,A and B,and each has a cost function TC = 2 + Q.Compare the firms' profits if they behave as Cournot duopolists with their profits if they form a cartel and share the market.

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Definitions:

Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.

Honeybees

Social flying insects known for their role in pollination and for producing honey and beeswax from the nectar of flowers.

Sea Turtles

Marine reptiles known for their ability to travel long distances across the oceans, having a shell for protection and varying in size and species.

Vomeronasal

An auxiliary olfactory sense organ that is found in many animals and is used to detect pheromones.