Suppose That the Inverse Demand for Bean Sprouts Is Given

question 50

Multiple Choice

Suppose that the inverse demand for bean sprouts is given by P(Y) = 750 -2Y and the total cost of producing Y units for any firm is TC(Y) = 30Y.If the industry consists of two Cournot duopolists, then in equilibrium each firm's production is

• A)60 units.
• B)120 units.
• C)180 units.
• D)90 units.
• E)93.75 units.

---

Definitions:

Inventory

The raw materials, work-in-progress goods, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor expenses.

Sales

The total amount of goods or services sold by a company within a specific period, often used as an indicator of a company's performance.

Inventory Turnover Rate

A ratio showing how many times a company's inventory is sold and replaced over a period.