Table 17-11 Only Two Firms, ABC and XYZ, Sell a Particular Product

question 177

Multiple Choice

Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.
-Refer to Table 17-11. ABC and XYZ agree to maximize joint profits. However, while ABC produces the agreed upon amount, XYZ breaks the agreement and produces 5 more than agreed. How much profit does XYZ make?

• A)$90
• B)$140
• C)$240
• D)$280

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Amok

A culturally bound syndrome primarily reported in Southeast Asia, involving a sudden outburst of unprovoked aggression and violence.

Hippocampus

A crucial part of the brain associated with memory formation and spatial navigation.

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The emotional, psychological, and physical distress experienced after exposure to a traumatic event.

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The front part of the frontal lobes of the brain, involved in complex behaviors such as planning, decision-making, and moderating social behavior.