A Small Nation Has Three Gasoline Suppliers with a Linear

question 101

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. If the firms compete, what is the equilibrium quantity in the market?

• A)45,000
• B)50,000
• C)450,000
• D)500,000

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Definitions:

Electrons

Subatomic particles with a negative charge that orbit the nucleus of an atom, involved in chemical reactions and electricity.

Oxidation-Reduction Reaction

Reaction in which one molecule is oxidized and another is reduced.

Charges

An amount or fee levied for a service, or the distribution of electrical energy.

Hydrogen Bonds

Weak bonds between molecules or within parts of a single molecule resulting from the attraction between a hydrogen atom and a more electronegative atom.