Use the Following to Answer Question

question 127

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 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 and firm 2 continues to produce 40 barrels,firm 2 will earn profits of:

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

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Definitions:

Volcanic

Pertaining to the processes associated with the eruption and formation of volcanoes and their emitted materials.

Basalt

A dark, fine-grained volcanic rock that is formed from the rapid cooling of basaltic lava exposed at or very near the surface of a planet.

Sedimentary Terrain

Areas dominated by sedimentary rocks, which are formed from the accumulation and lithification of mineral and organic particles over time.

Youngest

This term refers to the most recently formed or last in a sequence, often used in contexts related to geologic formations or the age of geological layers.