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.

Analyze how changes in societal norms and laws impact family structures.

Understand the role of marriage and cohabitation in defining family units.

Comprehend the influence of media portrayal on family perceptions.

Recognize the impact of economic and social policies on family dynamics.

---

Definitions:

Subsidiary

A company that is controlled by another company, usually referred to as the parent company or holding company.

Listed Company

A company whose shares are traded on a public stock exchange, allowing investors to buy and sell shares.

Retail Industry

The sector of the economy that is composed of individuals and companies engaged in the selling of finished products to end-user consumers.