Use the Following to Answer Question

question 180

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 at a marginal cost of $2 and no fixed cost.Suppose that these two producers have formed a cartel,agreed to split production of output evenly,and are maximizing total industry profits.If Margaret decides to cheat on the agreement and sell 100 more gadgets,Margaret's price effect will be a(n) _____ in profit of _____.

• A)decrease;$400
• B)increase;$400
• C)increase;$200
• D)decrease;$200

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Definitions:

Inoculation

The practice of introducing a small amount of disease-causing agent into the body to stimulate the immune system and create immunity against a specific disease.

Pan-Indian Alliance

A unification of various Native American tribes across North America for political or military purposes, often in response to European colonization and expansion.

Cherokee Land

Territory historically inhabited and claimed by the Cherokee people, a Native American tribe indigenous to the southeastern United States.