Use the Following to Answer Questions

question 15

Multiple Choice

Use the following to answer questions:
-(Table: Demand for Solar Water Heaters) Look at the table Demand for Solar Water Heaters. The marginal cost of producing solar water heaters is zero, and only two firms, Rheem and Calefi, produce them. If Rheem and Calefi get into a price war, the equilibrium price in the market will be:

• A) $0.
• B) $700.
• C) $800.
• D) $1,000.

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Definitions:

Reconciliations

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, typically used in accounting to check the accuracy of financial records.

Listed Entities

Companies whose stocks are traded on a public stock exchange, making their shares available for purchase by the general public.

Voluntarily Chooses

A decision made freely and without coercion, often referring to actions taken at the discretion of an individual or organization.

Public Companies

Companies that generally have a large number of issued shares and widespread ownership.