Suppose the Inverse Market Demand Is Given by P =

question 26

Multiple Choice

Suppose the inverse market demand is given by P = 105 − Q.If the incumbent continues to produce 40 units of output,which of the following equations best summarizes the potential entrant's residual demand curve?

• A) P = 65 − 2Q
• B) P = 20 − 0.5Q
• C) P = 150 − Q
• D) P = 65 − Q

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