The Following Table Shows a Small Community's Demand for Monthly

question 92

Multiple Choice

The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster) sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero) due to excess capacity.Use this information to answer the following questions:

-If the two firms operating in this market agreed to each supply one-half of the quantity a monopolist would supply,the contract would specify that

• A) Nextflix supplies 400 subscriptions and Flixbuster supplies 100 subscriptions.
• B) Flixbuster supplies 400 subscriptions and Nextflix supplies 100 subscriptions.
• C) Nextflix supplies 0 (zero)subscriptions and Flixbuster supplies 500 subscriptions.
• D) Flixbuster supplies 0 (zero)subscriptions and Nextflix supplies 500 subscriptions.
• E) Nextflix supplies 250 subscriptions and Nextflix supplies 250 subscriptions.

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Definitions:

Newly Admitted Resident

An individual who has recently entered a care facility, such as a nursing home or assisted living community.

Long-Term Care Facility

An establishment providing extended care for individuals who are unable to manage independently, typically due to age, disability, or chronic conditions.

Telephone Order

A directive given by a healthcare provider over the phone for patient treatment or medication.

Potassium Chloride

A chemical compound often used in medicine as a potassium supplement or in food processing as a salt substitute.