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.

---

Definitions:

Marginal Probability

The probability of a single event occurring without consideration of any other events.

Mutually Exclusive

Two events that cannot occur at the same time, indicating no overlap in possible outcomes.

Independent

The condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another event.

P(A / B)

Represents the conditional probability of event A occurring given that event B has occurred.