Suppose That the Inverse Demand for Bean Sprouts Is Given

question 50

Multiple Choice

Suppose that the inverse demand for bean sprouts is given by P(Y) = 750 -2Y and the total cost of producing Y units for any firm is TC(Y) = 30Y.If the industry consists of two Cournot duopolists, then in equilibrium each firm's production is

• A)60 units.
• B)120 units.
• C)180 units.
• D)90 units.
• E)93.75 units.

---

Definitions:

Consultant

A professional who provides expert advice in a particular area.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Working Capital

The difference between a company's current assets, like cash and accounts receivable, and its current liabilities, such as accounts payable, representing the short-term financial health and operational efficiency of a company.

Good Faith

Good Faith refers to an honest intention to act without taking an unfair advantage over another party, often assumed in the context of negotiations or business dealings.