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

question 31

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 = 1,500 - 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 earns a profit of $ ____.

• A) 3,062,500
• B) 1,531,250
• C) 6,125,000
• D) 500,000

---

Definitions:

Convention Centre

A large facility used for hosting conferences, conventions, trade shows, and other large events, offering ample space and amenities to accommodate attendees.

Motives

Internal states or desires that energize and direct behavior towards specific goals.

Expectations

Beliefs or anticipations about the way events, behaviors, or things should be in the future.

Theoretical Diversity

The presence and acceptance of a variety of theories or viewpoints in any field of study, acknowledging that multiple perspectives can contribute to a comprehensive understanding of a topic.