Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions:
-(Table: Demand for Crude Oil) Look at the table Demand for Crude Oil. Assume that the crude oil industry is a duopoly and the marginal cost and fixed cost of producing crude oil equals zero. Suppose that the two firms are maximizing industry profit and splitting the profit evenly. If firm 1 decides to cheat and increase production by 10 more barrels and firm 2 continues to produce 40 barrels, firm 2 will earn profits of:

• A) $6,400.
• B) $6,300.
• C) $3,500.
• D) $2,800.

Comprehend the impact of adding physical capital on a firm's costs and productivity.

Understand the concept of fixed and variable costs in production.

Recognize the effects of economies of scale, constant returns to scale, and diseconomies of scale.

Identify the role of specialization and diminishing returns in production.

---

Definitions:

Media Violence

Refers to the depiction of acts of physical aggression by individuals or groups in various forms of media.

Stringent Media Regulations

Strict rules and guidelines governing the content, operation, and impact of media outlets and communications.

Attribution Theory

A psychological theory that explains how individuals infer the causes of their own and other people's behavior, attributing them to either internal dispositions or external situations.

Dimensions

Measures or aspects that define the characteristics of an object, situation, or experience.