Suppose That Mystic Energy and E-Storm Are the Only Two

question 73

Multiple Choice

Suppose that Mystic Energy and E-Storm are the only two producers of hydrogen fuel cells. The market inverse demand curve for hydrogen fuel cells is P = 1,300 - 0.08Q, where Q is the number of fuels cells per month and P is the price per fuel cell. The marginal cost is constant at $500. Acting as a cartel, the owners of Mystic Energy and E-Storm agree to evenly split the market output. In this case, Mystic Energy produces ____.

• A) 5,000
• B) 3,000
• C) 2,500
• D) 1,500

---

Definitions:

Milk Production

The biological process by which mammals produce milk to feed their young.

Electroencephalogram

A test that measures and records the electrical activity of the brain to detect potential problems associated with this activity.

Electrical Impulses

Signals transmitted through neurons or artificial circuits, used to convey information or stimulate responses.

Brain

The organ located in the skull responsible for coordinating sensation, intellectual and nervous activity.