Suppose That the Duopolists Carl and Simon Face a Demand

question 16

Multiple Choice

Suppose that the duopolists Carl and Simon 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 - Q_s/2.
• B)16,400 - 400Q_s.
• C)16,400 - 800Q_s.
• D)4,000 - Q_s/2.
• E)12,000 - Q_s.

---

Definitions:

Customer Complaints

Expressions of dissatisfaction or grievances from customers about a product or service.

Improvements

Enhancements or upgrades made to processes, products, or systems to increase efficiency, effectiveness, or satisfaction.

Service

Activities or functions that are provided to meet the needs of customers or clients, often in exchange for payment.

Personal Attack

A personal attack involves criticizing or demeaning someone on a personal level rather than addressing the argument or the issue at hand.