If the Inverse Demand for Bean Sprouts Were Given

question 21

Multiple Choice

If the inverse demand for bean sprouts were given by P(Y) = 640 - 3Y 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)53.33 units.

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Definitions:

Realized Profits

Profits that are actually made from completed transactions, as opposed to unrealized profits from increases in value.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.

Non-Controlling Interest

A portion of the equity in a subsidiary not held by the controlling company, often representing the share of minority shareholders.

Net Income

The total profit or loss of a company after all expenses, taxes, and costs have been subtracted from total revenues.