Table 17-10 the Table Shows the Town of Driveaway's Demand Schedule for Schedule

question 370

Multiple Choice

Table 17-10
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.

-Refer to Table 17-10.If there are exactly five sellers of gasoline in Driveaway and if they collude,then which of the following outcomes is most likely?

• A) Each seller will sell 20 gallons, charge a price of $6, and earn a profit of $80.
• B) Each seller will sell 30 gallons, charge a price of $5, and earn a profit of $90.
• C) Each seller will sell 40 gallons, charge a price of $4, and earn a profit of $120.
• D) Each seller will sell 50 gallons, charge a price of $3, and earn a profit of $50.

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Definitions:

Inventory

Items, such as raw materials, work-in-progress, and finished goods, that a company holds with the intention of selling them.

Operating Activities

Day-to-day business functions and transactions that affect a company's net income, primarily revenue and expense activities.

Net Income

The amount of money that remains after subtracting all expenses, taxes, and costs from total revenue.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed.