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:

Indirect Labor

Workers who support the production process but do not directly contribute to the manufacturing of the product, such as maintenance and supervisory staff.

Inventoriable Costs

Expenses directly tied to the production of goods, including materials and labor, capitalized as inventory until sold.

Direct Materials

Raw materials that are directly traceable to the manufacturing of products and significantly contribute to the product's cost.

Direct Labor

Direct labor costs are the wages and related expenses paid to employees who directly work on the production of goods or services.