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:

Survey

A comprehensive examination or an assessment of something, often used for collecting data or understanding conditions or opinions.

Abatement

Abatement refers to the reduction, decrease, or removal of something, often used in legal contexts relating to the diminishing or cessation of nuisance or the reduction of a monetary obligation.

Alleged

Claimed to be the case or have taken place, although there is no proof.

Livery of Seisin

A historic legal ceremony transferring possession of property from a seller to a buyer.