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

question 149

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 $2.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, Margaret's profit will be _______, and Ray's profit will be _.

• A)$1500; $1,000
• B)$900; $600
• C)$1,400; $1,000
• D)$1,000; $1,400

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Definitions:

Adjustment Recognition

The process of incorporating adjustments into financial statements for more accurate representation of financial positions or to reflect specific accounting standards.

Equity Profits

Profits that result from an investor's share in the earnings of an equity-accounted investee, reflecting the investor's ownership interest in the investee.

Dividend Revenue

Income earned from owning shares in a company that pays dividends out of its profits to shareholders.

Investment Carrying Amount

The value at which an investment is recognized in the balance sheet after deducting any impairment or amortization.