Table 17-9 The Table Shows the Demand Schedule for a Particular Product

question 46

Multiple Choice

Table 17-9
The table shows the demand schedule for a particular product.
-Refer to Table 17-9. Suppose the market for this product is served by two firms that have formed a cartel. What price will the cartel charge in this market if the marginal cost of production is $4?

• A)$6
• B)$8
• C)$10
• D)$12

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Definitions:

Free-rider Problem

A situation where individuals benefit from resources or services without paying for their use, leading to under-provision or depletion of resources.

Nonrival Goods

Goods whose consumption by one individual does not reduce availability to others, such as public parks or broadcast television.

Pay-per-view Television

A type of television service by which subscribers can purchase events to view via private telecast.

Free-rider Problem

The free-rider problem occurs when individuals benefit from resources, goods, or services without paying for them, leading to underprovision of those goods or services.