Gotcha, the Only Seller of Stun Guns, Faces the Inverse

question 12

Multiple Choice

Gotcha, the only seller of stun guns, faces the inverse market demand curve P = 400 - 12Q, where Q measures the number of stun guns per day and P is the price per stun gun. The marginal cost is constant at $64. Suppose a new firm, Ouchy, enters the stun gun market. Ouchy's marginal cost is also constant at $64. Gotcha and Ouchy agree to form a cartel and evenly split the market output. The market price in this case is $____.

• A) 400
• B) 324
• C) 232
• D) 212

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Definitions:

Psychological Processes

The mental functions and behaviors involved in perceiving, thinking, understanding, and interacting with the world.

Health Disparities

Differences in health outcomes and access to healthcare across different populations, often influenced by social, economic, and environmental disparities.

Core Measures

Key performance indicators used by health care institutions to assess the effectiveness, safety, and quality of patient care in specific areas.

Poor People

Individuals or groups living below the poverty line, lacking sufficient financial resources to meet basic living expenses.