1. Suppose V-wire is the only supplier of cellular phone services. The demand for cell phone services is p = 82q and V-wire faces a total cost of 2q². What is the profit maximizing price that V-wire should charge?

a. 10

b. 2

c. 6

d. 8

e. 12

2. Freebirds and Super Cucas compete as Stackelberg duopolists, with Freebirds as the industry leader. Both have MC = 2 and face demand P = 18 Q. What are the profits of each in equilibrium?

a. Freebirds: $36, Super Cucas: $18

b. Freebirds: $32, Super Cucas: $16

c. Freebirds: $16, Super Cucas: $8

d. Freebirds: $18, Super Cucas: $9

3. Willy Wonka and King Kandy act as Cournot duopolists, selling chocolate with market demand defined by p = 6 2Q. Both chocolatiers have a marginal cost of 2. What is the Cournot equilibrium price?

a. 14/3

b. 8/3

c.16/3

d. 10/3