Suppose the Daily Demand for Coke and Pepsi in a Small

question 30

Multiple Choice

Suppose the daily demand for Coke and Pepsi in a small city are given by and where Q_C and Q_P are the number of cans Coke and Pepsi sell,respectively,in thousands per day.P_C and P_P are the prices of a can of Coke and Pepsi,respectively,measured in dollars.The marginal cost is $0.45 per can.What is the Nash equilibrium price for Coke?

• A) $.016
• B) $0.45
• C) $0.53
• D) $0.38

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Definitions:

Paranoid

A term often used to describe a mental state characterized by irrational suspicions and mistrust of others.

Catatonic

A state of immobility and unresponsiveness, often associated with schizophrenia and other mental health disorders.

Rigid Posture

The maintenance of a stiff body position, often as a result of muscle tension, stress, or neurological conditions, limiting flexibility and ease of movement.

Disorganized

Lacking structure, system, or planning, often resulting in confusion or chaos.