Use the Following to Answer Question

question 264

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 both firms decide to cheat and produce 10 more barrels each,firm 1's profit will be _____,and firm 2's profit will be _____.

• A)$3,200;$3,200
• B)$3,200;$3,000
• C)$3,000;$3,200
• D)$3,000;$3,000

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Definitions:

Environmental Protection Agency

An independent executive agency of the United States federal government tasked with environmental protection matters and regulating the implementation of laws intended to protect the environment.

Offshore Drilling

The mechanical process of drilling below the seabed for the extraction of oil and gas resources.

Federal Agencies

Organizations within the government of the United States that are tasked with the administration of specific legislation and the execution of laws and policies.

Legislative Committee

A group within a legislative body charged with examining issues related to specific subjects and recommending legislation.