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

question 340

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 jointly maximize profits. If ABC and XYZ each break the agreement and each produce 5 more than agreed upon, how much less profit does each make, compared to the profit at to the cartel output?

• A)$5
• B)$20
• C)$60
• D)$90

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Definitions:

Ventromedial Hypothalamus

A part of the hypothalamus involved in regulating satiety, metabolism, and various other autonomic functions.

Ventromedial Hypothalamus

A part of the hypothalamus involved in regulating satiety, metabolism, and sexual behaviors.

Overeating

The consumption of food in quantities greater than the energy expenditure, leading to potential weight gain.

Digestive Problems

Issues related to the gastrointestinal tract that can include symptoms such as bloating, constipation, or diarrhea.