Economics

posted by .

The market demand in a Bertrand duopoly is P = 15 - 4Q, and the marginal costs are $3. Fixed costs are zero for both firms. Which of the following statement(s) is/are true?

a.P = $3.

b.P = $10.

c.P = $15.

d.None of the statements associated with this question are correct.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    "The reason why firms charge a lower price at higher output levels because they are able to spread their fixed costs over a large production run" This is a true of false question and I would just like to know where i might look to …
  2. economics

    suppose a competitive market consists of identical firms with a constant long run marginal cost of $10. Suppose the demand curve is given by q=1000-p a)What are the price and quantity consumed in the long run competitive equilibrium?
  3. Microeconomics

    ok so i must have not payed attention in class when we talked about asymmetric costs in cournot duopoly's, so i am stuck on a homework problem. The problem reads as follows (*Note that my notation of c simply means Marginal Cost): …
  4. managerial economics

    Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal constant of $4. (a)Write down the Bertrand equilibrium prices …
  5. managerial economicsQ3

    Suppose the inverse market demand equation is P = 80 ¡V 4(QA+QB), where QA is the output of firm A and QB is the output of firm B, and both firms have a constant marginal cost of $4 (fixed costs are zero). (a)Write down the profit …
  6. Economics

    A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 - Q. Suppose fixed costs rise to $200. What will happen in the market?
  7. Economics

    The market demand in a Bertrand duopoly is P = 15 - 4Q, and the marginal costs are $3. Fixed costs are zero for both firms. Which of the following statement(s) is/are true?
  8. economy

    consider a perfectly competitive market in which all firms have the same costs. choose the statement that is incorrect a)the market demand is elastic at the market price b)each firm takes the market price as given and produces its …
  9. economics

    Consider the problem of a competitive firm which has fixed costs of $1000, semi-fixed-costs of $1000, and variable costs given by q^2. What is the maximum market price at which the firm decides to supply zero?
  10. CALCULUS ECONOMICS

    Consider the problem of a competitive firm which has fixed costs of $1000, semi-fixed-costs of $1000, and variable costs given by q^2. QUESTION: What is the maximum market price at which the firm decides to supply zero?

More Similar Questions