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

question 139

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. What is the socially efficient quantity of the product?

• A)25
• B)35
• C)50
• D)70

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Definitions:

Sociologists

Experts or scientists who study societies, examining the structures, systems, and dynamics of human interaction and social behavior.

Equilibrium Theory

The assertion that a system’s natural state is one of balance and harmony.

Social Change

The transformation over time of cultural norms, values, societal structures, and behaviors, often driven by conflict, innovation, and geopolitical shifts.

Crazes

Intense but short-lived fads or trends that capture a large following or great enthusiasm for a brief period.