The Duopolists Carl and Simon Face a Demand Function for Pumpkins

question 49

Multiple Choice

The duopolists Carl and Simon face a demand function for pumpkins of Q = 8,200 - 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 $.50 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

• A)R_C (Q_s)= 4,000 - Qs/2.
• B)R_C(Q_s)= 8,200 - 400Q_s.
• C)R_C(Q_s)= 8,200 - 800Q_s.
• D)R_C(Q_s)= 2,000 - Qs/2.
• E)R_C(Q_s)= 6,000 - Q_s.

Appreciate the complexity of motives behind murders, including honor killings and impulse vs. premeditated murders.

Recognize the psychological and sociological aspects influencing murderers and murder-suicide cases.

Understand the role of cultural and social theories in explaining homicide rates.

Analyze the characteristics and motivations of serial killers and stalkers.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a periodic payment of interest on debt.

Unlevered Cost

The cost of funding a project or investment without taking into account the effects of leverage, reflecting the cost of equity.

Pre-Tax Cost

The cost of an investment or expense before the deduction of taxes, often used to compare the fiscal efficiency of different financial decisions.

Cost of Equity

The return that investors expect for providing capital to a company, often calculated using models like the Capital Asset Pricing Model (CAPM).