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Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Q = 20,000 - 200P, where Pis the price of a cubic
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Q" = 20,000 - 200P, where Pis the price of a cubic yard of concrete and Q" is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. The Cournot model describes the competition in this market. Which of the following best represents Alice's inverse residual demand function? Multiple Choice O AQA) = (100 - 0.005QA) - 0.005QK AQA) = (100 - 0.005Q4) - 0.005QA O AQA) = (200 - 0.005QA) - 0.005QK O AQA) = (200 - 0.005Q4) - 0.005QA
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