The Market Inverse Demand Curve Is P = 60 -

question 58

Multiple Choice

The market inverse demand curve is P = 60 - Q. The three firms in this industry are acting like a monopolist, evenly splitting output. The marginal cost is $6. Suppose one of the firms produces an additional unit of output. The cheating firm's profit will change from:

• A) $50 to $40.
• B) $34 to $67.
• C) $230 to $252.
• D) $243 to $260.

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