Use the Following to Answer Questions

question 230

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. Suppose they agree to produce only 25 water heaters each. If Rheem cheats on the agreement and produces 30 water heaters, what is the price effect for Rheem?

• A) -$1,000
• B) -$2,500
• C) $2,000
• D) $1,000

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Definitions:

First Amendment

An amendment to the U.S. Constitution that protects freedoms, including speech, religion, press, assembly, and the right to petition the government.

Doctrine

A belief or set of beliefs held and taught by a church, political party, or other group, serving as a guide for conduct or decision-making.

Prior Restraint

A government action that prohibits speech or other expression before it can take place, often challenged as a violation of First Amendment rights in the United States.

Lemon Test

A three-part test established by the Supreme Court to determine whether a government action violates the First Amendment's establishment clause.