Use the Following to Answer Question

question 112

Multiple Choice

Use the following to answer question:
-(Table: Demand Schedule of Gadgets) Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets with no marginal cost or fixed cost.Suppose that these two producers have formed a cartel and are maximizing total industry profits and splitting the production of output evenly between themselves.If Margaret decides to cheat on the agreement and sell 100 more gadgets,how many gadgets will she sell?

• A)0
• B)250
• C)350
• D)600

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Definitions:

Preferred Stock

represents a class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

Earnings Per Share

A financial ratio that measures the amount of profit attributed to each outstanding share of common stock, indicating a company's profitability on a per-share basis.

Net Income

The total earnings of a company after subtracting all expenses from its total revenue, representing the profit or loss in a financial period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.