Three Firms Agree to Operate as a Monopoly and Charge

question 29

Multiple Choice

Three firms agree to operate as a monopoly and charge the monopoly price of $50 for their product and (jointly) produce the monopoly quantity of 10,000 units. If the competitive price for the product is $35, under the Clayton Act these three firms face treble damages of_______ .

• A)$450,000
• B)$1,000,000
• C)$150,000
• D)$3,000,000

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Definitions:

Quantity Supplied

The total amount of a product or service that producers are willing and able to sell at a given price over a specified period.

Derived Demand

The demand for a factor of production or intermediate good that occurs as a result of the demand for another product or service.

Factor of Production

Inputs used in the production of goods or services in the process of wealth creation, including labor, capital, land, and entrepreneurship.

Human Capital Development

Refers to the process of improving an individual's skills, knowledge, and abilities, typically through education and training, to enhance their productivity and potential in the workforce.