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

question 13

Multiple Choice

If the inverse demand for bean sprouts were given by P(Y) = 430 - 2Y and the total cost of producing Y units for any firm were TC(Y) = 10Y and if the industry consisted of two Cournot duopolists, then in equilibrium each firm's production would be

• A)52.50 units.
• B)70 units.
• C)105 units.
• D)35 units.
• E)53.75 units.

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Definitions:

Sales

The total amount of goods or services sold by a company within a specific period, reflecting the primary source of its revenue.

Nominal Annual Cost

The cost associated with a financial transaction or investment, expressed as a yearly rate without adjustment for inflation.

Net Days

This term signifies the number of days within which a payment is due after an invoice has been received.

Cash Conversion Cycle

A metric that expresses the time (days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales.