There Are Only Two Firms in an Industry with Demand

question 125

Multiple Choice

There are only two firms in an industry with demand curves q₁ = 30 - P and q₂ = 30 - P.Both have no fixed costs and each has a marginal cost of 10 per unit produced.If they behave as profit-maximizing price takers,each produces 10 units and sells them at a price of 10 so that each firm makes zero economic profits.If they form a cartel,their inverse demand curve is

• A) Q = 30 - P.
• B) Q = 60 - 2P.
• C) P = 60 - 2Q.
• D) P = 30 - Q/2.

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Definitions:

Measurable Performance

The aspect of performance that can be quantitatively assessed or evaluated through specific metrics or indicators.

Benchmarks

Standard points of reference against which things can be measured or assessed, often used for comparing performance or quality.

Progress Tracking

The process of monitoring and evaluating the advancement of activities, projects, or strategies towards achieving defined objectives.

Goals

Specific, measurable, achievable, relevant, and time-bound objectives that organizations or individuals set to guide their efforts and measure their success.