Jack and Annie are the only sellers of otters in a three-state area. The inverse
ID: 1100165 • Letter: J
Question
Jack and Annie are the only sellers of otters in a three-state area. The inverse market demand for otters is given by P = 100 ? 0.5q, where q = the total quantity offered for sale in the marketplace. Specifically, q = qJ + qA, where qJ is the amount of otters offered for sale by Jack and qA is the amount offered for sale by Annie. Both Jack and Annie can produce otters at a constant marginal and average total cost of $20. The market inverse demand for otters is given by P = 100 ? 0.5(qJ + qA). What is the Cournot level of profit for Jack and Annie?
11.Jack and Annie are the only sellers of otters in a three-state area. The inverse market demand for otters is given by P = 100 ? 0.5q, where q = the total quantity offered for sale in the marketplace. Specifically, q = qJ + qA, where qJ is the amount of otters offered for sale by Jack and qA is the amount offered for sale by Annie. Both Jack and Annie can produce otters at a constant marginal and average total cost of $20. The market inverse demand for otters is given by P = 100 ? 0.5(qJ + qA). What is the Cournot level of profit for Jack and Annie?
A. $1,421 each B. $1,600 each C. $1,177 each D. $1,366 eachExplanation / Answer
C. $1,177 each
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