There Are Only Two Firms in an Industry with Demand

question 77

Multiple Choice

There are only two firms in an industry with demand curves q₁ = 30 - P and q₂ = 30 - P.Both have no fixed costs and each has a marginal cost of 10 per unit produced.If they behave as profit-maximizing price takers,each produces 20 units and sells them at a price of 10 so that each firm makes zero economic profits.If they formed a cartel and split the production of the output evenly,the economic profit of each firm would be

• A) 0.
• B) 50.
• C) 100.
• D) 200.

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Definitions:

Unsuccessful Interviewees

Individuals who do not achieve the desired outcome in a job or position interview, typically not receiving an offer.

Specific Details

Precise and clear pieces of information that provide more depth or clarity.

Phone Interview

A preliminary job interview conducted over the phone to screen candidates before inviting them for a face-to-face interview.

Voice Mail

An electronic system that captures, stores, and plays back audio messages left by callers when the call recipient is unable to answer the phone.