Beta's Price PolicyHighLowAB$20$30HighAlpha'sPricePolicy$20$10CD$10$15Low$30$15Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in thesouthwest corner of each cell. If both firms follow a high-price policy.Multiple ChoiceBeta will realize a $10 million profit and Alpha a $30 million profit.each will realize a $15 million profitAlpha will realize a $10 million profit and Beta a $30 million profit

Let's examine the potential results depending on the information provided:- If Alpha and Beta both…

Answered: Beta's Price Policy High Low A B $20…

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 9PA

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Kate and Alice are small-town ready-mix concrete duopolints. The market demand tunction is o- 20,000 - 200Pwhere Pis the price of a cubic yard of concrete and Ois the number of cubic yards demanded per year. Marginal cost is sa0 per cubic yard. Suppose Kate onters the market first and chooses her output belore Alice. What is the difference in Alice's profit when Kata enters the market tirst, compared to when they simultanecusly select ther outputa? When Kate entors the markat first, Alice's profit is $3,888.a0 lower. O When Kate enters the market fest, Alice's profit is 513,333.33 lower. O When Kate enters the market first, Alice's profit is $5,000 lower. O When Kate onters the market first, Alice's proft is $1.111.11 higher,
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