(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:

M3

Represents an even broader definition of the money supply, including M2 plus larger time deposits, institutional money market funds, and larger liquid assets.

M2

An expansive categorization of money that encompasses cash, checking deposits, and forms of near money that can be easily converted into cash or used for payments.

M1

M1 encompasses the most liquid forms of money supply, including cash and assets that can quickly be converted to cash.

M2

M2 is a broader classification of money supply that accounts for currency in circulation and various other types of accounts that are less liquid than those in M1.