Solved

You Believe That You Have a Costless Monopoly

Question 10

Multiple Choice

You believe that you have a costless monopoly. Given your estimate of the one day demand for mushrooms:
Qm = 900 - 100Pm
Where Qm = servings of fried mushroom and gravy.
If another booth opens next to yours also selling fried mushroom and gravy, but demand remains as above assume the product is undifferentiated) , how much revenue will each of you generate under the Cournot assumption?


A) $900
B) $1600
C) $1800
D) $16000
E) $800

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions