Table 17-8

question 139

Multiple Choice

Table 17-8.For a certain small town,the table shows the demand schedule for water.Assume the marginal cost of supplying water is constant at $4 per bottle.

-Refer to Table 17-8.If there are two suppliers of water,Mort and Callie,and if they have successfully formed a cartel and split the market evenly,then how many bottles will Callie supply?

• A) 50
• B) 100
• C) 150
• D) 200

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Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance over a period.

Common Shares

Equity securities that represent ownership in a company, entitling holders to vote at shareholder meetings and receive dividends.

Preferred Shares

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and often carries no voting rights.

Basic Earnings

The net income divided by the weighted average number of shares outstanding, representing a company's earnings per share without any adjustments.