4. Farmer Andy and Farmer Betty are the only twofarmers that grow heirloom tomatoes for sale at thelocal farmer's market and compete as Cournotduopolists. The inverse demand curve for heirloomtomatoes at the market is P = 140 - 5Q where P is the%3Dprice per pound of tomatoes and Q is the number ofpounds of tomatoes in hundreds per week; Q = qA +qB. Both Andy and Betty have a cost of growingtomatoes of w = 10, r = 20, and both have K = 1 in theshort run. They both have a production function of q =L0.5KO.5. They will both earn profits of --.

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4. Farmer Andy and Farmer Betty are the only two farmers that grow heirloom tomatoes for sale at the local farmer's market and compete as Cournot duopolists. The inverse demand curve for heirloom tomatoes at the market is P = 140 - 5Q where P is the price per pound of tomatoes and Q is the number of pounds of tomatoes in hundreds per week; Q = qA + qB. Both Andy and Betty have a cost of growing tomatoes of w = 10, r = 20, and both have K = 1 in the short run. They both have a production function of q = L0.5KO.5. They will both earn profits of --.

4. Farmer Andy and Farmer Betty are the only two farmers that grow heirloom tomatoes for sale at the local farmer's market and compete as Cournot duopolists. The inverse demand curve for heirloom tomatoes at the market is P = 140 - 5Q where P is the price per pound of tomatoes and Q is the number of pounds of tomatoes in hundreds per week; Q = qA + qB. Both Andy and Betty have a cost of growing tomatoes of w = 10, r = 20, and both have K = 1 in the short run. They both have a production function of q = L0.5KO.5. They will both earn profits of --.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.6P

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