Table 17-4 the Table Shows the Town of Mauston's Demand Schedule for Schedule

question 427

Multiple Choice

Table 17-4
The table shows the town of Mauston's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline.
-Refer to Table 17-4. If there are exactly two sellers of gasoline in Mauston and if they collude, then which of the following outcomes is most likely?

• A)Each seller will sell 250 gallons and charge a price of $5.
• B)Each seller will sell 175 gallons and charge a price of $3.
• C)Each seller will sell 125 gallons and charge a price of $2.5.
• D)Each seller will sell 125 gallons and charge a price of $5.

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Definitions:

Operate

The act of functioning or running a business or machine, carrying out actions necessary for performance.

Average Variable Cost

the total variable cost divided by the quantity of output produced; it shows the variable cost per unit of output.

Short Run

The short run is a period in which at least one factor of production is fixed, limiting the ability of a business to expand or reduce its output.

Shut Down

A temporary choice made by a company to halt manufacturing because of unsuitable market circumstances.