The Demand Function in a Duopoly Is: P = 100

question 17

Multiple Choice

The demand function in a duopoly is: P = 100 - 2(Q1 + Q2) . If the first firm decides to sell 10 units while the second firm sells 20 units, which of the following will be true?

• A) The second firm will earn twice as much revenue as the first firm.
• B) The second firm will sell at a lower price than the first firm.
• C) An increase in one firm's output will not affect the other firm's revenue.
• D) The first firm will earn a higher profit than the second firm.
• E) The market price will be determined by the second firm's output which is larger than the first firm's output.

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Definitions:

Erythrocyte

A red blood cell that carries oxygen from the lungs to the body's tissues and returns carbon dioxide from the tissues back to the lungs.

Polycythemia

Polycythemia is a blood condition characterized by an increased concentration of hemoglobin in the blood, leading to thicker blood.

RBCs

Red Blood Cells, responsible for carrying oxygen throughout the body.

Hyperglycemia

A medical condition characterized by high levels of glucose in the blood, often associated with diabetes.