Use the Following to Answer Question

question 123

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 and fixed cost of producing crude oil equals 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,it will earn profits of:

• A)$6,400.
• B)$6,300.
• C)$3,500.
• D)$2,800.

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Definitions:

Random Sample

A subset of a statistical population in which each member of the subset has an equal probability of being chosen, ensuring the sample's representativeness of the whole population.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Replicable Results

Outcomes of experimental studies or research that can be consistently reproduced under the same conditions.

Procedures

A series of actions or steps taken in order to achieve a particular end, often in a scientific or systematic manner.