If the Inverse Demand for Bean Sprouts Were Given by P(Y)=

question 23

Multiple Choice

If the inverse demand for bean sprouts were given by P(Y) = 940 - 5Y and the total cost of producing Y units for any firm were TC(Y) =40Y and if the industry consisted of two Cournot duopolists, then in equilibrium each firm's production would be

• A)90 units.
• B)45 units.
• C)30 units.
• D)60 units.
• E)47 units.

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Definitions:

Heckscher-Ohlin Theory

An economic theory that suggests countries export what they can most efficiently and abundantly produce.

Absolute Advantage

The ability of a country, company, or individual to produce a good or provide a service more efficiently than competitors.

World Trade Organization

An intergovernmental organization that regulates international trade by providing a framework for negotiating trade agreements and resolving disputes between its member countries.

Trade Agreements

Treaties between two or more nations that outline the terms and conditions of trade between them, possibly including tariffs, quotas, and other trade restrictions.