Table 17-4
Only Two Firms, JKL and XYZ, Sell a Particular

question 164

Multiple Choice

Table 17-4
Only two firms, JKL and XYZ, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.
​
​
$$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Price } \\\text { (Dollars per unit) }\end{array} & \begin{array} { c } \text { Quantity Demanded } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (Dollars) }\end{array} \\\hline 28 & 0 & 0 \\\hline 26 & 5 & 130 \\\hline 24 & 10 & 240 \\\hline 22 & 15 & 330 \\\hline 20 & 20 & 400 \\\hline 18 & 25 & 450 \\\hline 16 & 30 & 480 \\\hline 14 & 35 & 490 \\\hline 12 & 40 & 480 \\\hline 10 & 45 & 450 \\\hline 8 & 50 & 400 \\\hline 6 & 55 & 330 \\\hline 4 & 60 & 240 \\\hline 2 & 65 & 130 \\\hline 0 & 70 & 0 \\\hline\end{array}$$ ​
-Refer to Table 17-4. JKL and XYZ agree to maximize joint profits. However, while JKL produces the agreed-upon amount, XYZ breaks the agreement and produces 5 more than agreed. How much profit does XYZ make?

• A)$100.00
• B)$140.00
• C)$240.00
• D)$120.00

---

Definitions:

Social Loafing

The occurrence in which people put forth less effort towards attaining a goal while working as part of a group than they do when working individually.

Deindividuation

This psychological phenomenon occurs when individuals immersed in a group lose their sense of individual identity, often resulting in a detachment from personal responsibility and an increase in impulsive behaviors.

Colliding Cultures

The clash that occurs when different cultural values, beliefs, practices, or attitudes interact, often leading to conflict or misunderstanding.

Normative Social Influence

Influence resulting from a person’s desire to gain approval or avoid disapproval.