Use the Following to Answer Question

question 186

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,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 but Ray continues to sell 250 gadgets,Ray's profits will be:

• A)$1,400.
• B)$1,250.
• C)$1,000.
• D)$400.

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Definitions:

Infeasible Levels

Conditions or scenarios that cannot be achieved or realized due to practical or theoretical constraints.

Efficient

Achieving maximum productivity with minimum wasted effort or expense, often in the context of economic resource allocation.

Economy

The system by which goods and services are produced, distributed, and consumed within a society or geographic area.

Inefficient

The condition where resources are not used in the best possible way, often leading to waste and loss of potential gain.