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:

AAC

Advanced Audio Coding, a standardized, lossy compression and encoding scheme for digital audio, designed to be the successor of MP3 that offers better sound quality.

ADC

Analog-to-Digital Converter, a system that converts analog signals into digital data.

WMV

Windows Media Video, a video compression format developed by Microsoft, used for storing and streaming digital video content.

SD

An abbreviation for Secure Digital, a non-volatile memory card format used in portable devices such as digital cameras and smartphones.