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The Inverse Market Demand Curve Is P = 170 -

question 98

Multiple Choice

The inverse market demand curve is P = 170 - 4Q. Two firms in this market are evenly splitting the output. Each firm produces the product at a constant marginal cost of $10. Which of the following statements is TRUE?
I. If one firm produces 2 more units of output, its profits will rise to $864.
II. If neither firm cheats, each firm will earn a profit of $800.
III. If one firm produces 3 more units of output, the other firm's profits will fall to $680.


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Global Stratification

The unequal distribution of wealth, power, and resources among countries worldwide.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, derived from the remains of living organisms that were buried millions of years ago.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to the greenhouse effect and global warming.

Developed Nations

Countries characterized by high levels of economic development, advanced technological infrastructure, and high standards of living.

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