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

question 164

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. In this case, Ouchy's output level is ____.

• A) 14
• B) 11
• C) 9
• D) 7

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Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary activities, speech, senses, thought, and memory.

Regulate Body Temperature

The physiological processes that maintain a stable internal body temperature despite external environmental changes.

Regulate Heart Rate

The adjustment of the frequency of heartbeats, controlled by the autonomic nervous system and various hormones.

Corpus Callosum

A large band of neural fibers connecting the two hemispheres of the brain, facilitating communication between the two sides.