Use the Following to Answer Questions

question 219

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets with no marginal cost or fixed cost. If industry output is 700, each firm's profits will be _____ than they would be at the output of 500, which maximizes industry profit.

• A) $150 less
• B) $150 more
• C) $200 more
• D) $200 less

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Definitions:

Regulatory Agency

A governmental organization tasked with creating and enforcing rules to regulate and supervise specific industries or activities.

Internal Revenue Service

The federal agency responsible for enforcing U.S. tax laws and collecting taxes.

Creditor

An entity (person or institution) that lends money or extends credit to another entity.

Investor

A person or organization that invests money anticipating financial gains in return.