Use the Following to Answer Question

question 241

Multiple Choice

Use the following to answer question:
-(Table: Demand for Solar Water Heaters) Use Table: Demand for Solar Water Heaters.The marginal cost of producing solar water heaters is zero,and only two firms,Rheem and Calefi,produce them.Suppose they agree to produce only 25 water heaters each.If Rheem cheats on the agreement and produces 30 water heaters,what is the quantity effect for Rheem?

• A)$1,000
• B)$4,500
• C)$2,000
• D)$9,000