A Small Nation Has Three Gasoline Suppliers with a Linear

question 26

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' managers form a price- fixing cartel that maximizes the firms' total profit, what is the total quantity produced by all firms?

• A)45,000
• B)22,000
• C)225,000
• D)450,000

---

Definitions:

Harsh Discipline

Punitive measures used to correct or control behavior, often involving severity or strictness, that can have negative psychological impacts.

Affection

A feeling of fondness or liking for someone or something, often displayed through physical or verbal expressions.

Reactive Aggression

A form of aggressive behavior that is prompted in response to a perceived threat or frustration, often impulsive and emotional rather than premeditated.

Overt Aggression

A form of aggressive behavior that is openly displayed and directly targeted towards someone, often involving physical or verbal hostility.