Figure: Demand 2 Two Firms in an Industry Act

question 5

Multiple Choice

Figure: Demand 2 Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.

• A) $24; $4
• B) $28; $14
• C) $84; $32
• D) $12; $8

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Definitions:

Lifetime Prevalence

The proportion of individuals in a population who have ever experienced a particular disorder or condition at any time in their lives.

Schizophrenia

A significant psychological condition marked by alterations in cognition, sensory perceptions, feelings, speech, self-identity, and actions.

Neurotransmitter Receptors

Proteins located on neuronal cell membranes that bind neurotransmitters and initiate cellular responses.

Intellectual Ability

The capacity to perform mental activities—thinking, reasoning, and problem-solving—at a higher level of complexity and efficiency.