Use the Following to Answer Question

question 95

Multiple Choice

Use the following to answer question:
-(Table: Demand for Crude Oil) Use Table: Demand for Crude Oil.Assume that the crude oil industry is a duopoly and the marginal cost of producing crude oil is zero.Suppose that the two firms are maximizing industry profit and splitting the profit evenly.If firm 1 decides to cheat and increase production by 10 more barrels,the price of crude oil will be:

• A)$0.
• B)$70.
• C)$80.
• D)$160.

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Definitions:

Independent Contractor

An individual who provides services to another entity under terms specified in a contract or within a freelance agreement, not considered an employee.

Employee

A person who is hired by another person or business for a salary or wages to perform specific duties.

Confidential Information

Any data or information that is proprietary to a company and not to be shared with competitors or the general public.

Agency Relationship

A legal relationship in which one party, the agent, acts on behalf of another party, the principal, in transactions with third parties.