Table 17-9 Only Two Firms, Acme and Pinnacle, Sell a Particular Product

question 224

Multiple Choice

Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.

-Refer to Table 17-9.Acme and Pinnacle agree to jointly maximize profits.If Acme and Pinnacle each break the agreement and each produce 100 more than agreed upon,how much less profit does each make?

• A) $250
• B) $750
• C) $1,000
• D) $2,000

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