Ann and Bruce Each Own a Pizza Store in Frostbite

question 20

Multiple Choice

Ann and Bruce each own a pizza store in Frostbite Falls, Minnesota.Demand for pizza is given by Q = 400 2 40P.Having the only two pizza stores in Frostbite Falls, they attempt to profitably split the market without violating the Sherman Antitrust Act.Each has the cost function C = 50 + 2Q.If Ann and Bruce behave as duopolists, each earns a profit of

• A)$568.89.
• B)$497.78.
• C)$0.
• D)$234.44.
• E)$640.

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Definitions:

European Monetary Union

The European Monetary Union is a group of European countries that share a common currency, the euro, and a common central bank, the European Central Bank.

Manufacturing Export

Goods produced domestically and sold to customers in foreign countries.

Largest Exporter

A country or region that ships the highest volume or value of goods to other countries, leading the world in exports.

Dutch Economy

Refers to the economic system and practices of the Netherlands, characterized by its highly mechanized agricultural sector, significant international trade, and advanced industrial base.