Suppose That Grinch and Grubb Go into the Wine Business

question 8

Multiple Choice

suppose that Grinch and Grubb go into the wine business in a small country where wine is difficult to grow.The demand for wine is given by p = $420 - .2Q, where p is the price and Q is the total quantity sold.The industry consists of just the two Cournot duopolists, Grinch and Grubb.Imports are prohibited.Grinch has constant marginal costs of $60 and Grubb has marginal costs of $30.How much Grinch's output in equilibrium?

• A)275
• B)550
• C)825
• D)1,100
• E)1,650

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Definitions:

Significance Level

A threshold for determining whether a statistical result obtained is not attributed to chance, commonly set at values like 0.05, indicating a 5% risk of error.

Statistically Significant

A measure used to determine if the results of a study are unlikely to have occurred by random chance alone, often through a p-value.

Confidence Interval

A collection of values, drawn from sample data, that is presumed to capture the value of a not yet known population characteristic.

National Average

The average of a specific set of measurements or data points across the entire nation.