Suppose the Inverse Market Demand Is Given by P =

question 36

Multiple Choice

Suppose the inverse market demand is given by P = 20 − Q.If the incumbent continues to produce eight units of output,which of the following equations best summarizes the potential entrant's residual demand curve?

• A) P = 12 − Q
• B) P = 8 − Q
• C) P = 20 − 12Q
• D) P = 12 − 8Q

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