(Table: Demand Schedule for Gadgets) Look at the Table Demand

question 140

Multiple Choice

(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets.The market for gadgets is dominated by two producers, Margaret and Ray.Each firm can produce gadgets at a marginal cost of $0.The table shows the market demand schedule for gadgets.Suppose that these two producers have formed a cartel and are maximizing total industry profits.If Margaret decides to cheat on the agreement and sell 100 more gadgets, the market price of gadgets will be _.

• A)$4
• B)$5
• C)$6
• D)$7

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Definitions:

Settlement

An agreement reached by parties in a lawsuit before the case goes to trial or a final judgment is issued.

Litigation

The process of taking legal action or engaging in a lawsuit to resolve disputes between parties.

Legal Right

Entitlements or permissions under the law that can be enforced or recognized by legal institutions.

Bad Faith

Dishonest dealing, failing to meet obligations, or violating standards of honesty in transactions.