A Small Nation Has Three Gasoline Suppliers with a Linear

question 10

Multiple Choice

A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month.
-Refer to the information above. What is the vertical intercept of the demand curve?

• A)0.50
• B)500,000
• C)100,000
• D)0.20

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Definitions:

Bilateral Contract

A type of agreement where both parties make a promise to each other to perform certain acts or refrain from performing certain acts.

Liquidated Debt

A debt with a fixed and determinable amount that is agreed upon by both parties.

Accord And Satisfaction

A legal concept where parties to a dispute resolve their differences through a mutually agreed upon solution, often involving payment in exchange for dropping a claim.

Unliquidated Debt

A debt for which the exact value has not been determined, often due to disputes over amount or the presence of damages.