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:

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