Suppose That Grinch and Grubb Go into the Wine Business

question 15

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 = $360 - .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 $75 and Grubb has marginal costs of $15.How much Grinch's output in equilibrium?

• A)562.50
• B)187.50
• C)750
• D)375
• E)1,125

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Definitions:

Secondary

Coming after, less important than, or resulting from someone or something else that is primary.

Upcoming Event

A scheduled occurrence that is planned to happen in the future.

Appraisal

The act of evaluating or estimating the nature, quality, or importance of something or someone.

Biopsychosocial Model

An approach to understanding human health and illness that considers biological, psychological, and social factors.