Table 17-6

question 96

Multiple Choice

Table 17-6. The table shows the demand schedule for a particular product.

-Refer to Table 17-6.Suppose the market for this product is served by two firms that have formed a cartel.What price will the cartel charge in this market if the marginal cost of production is $4?

• A) $6
• B) $8
• C) $10
• D) $12

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Definitions:

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations.

Promisor

The person or party who makes a promise or agrees to perform an action or fulfill an obligation under a contract.

Promisee

The individual or entity to whom a promise or commitment is made, typically in a contractual agreement.

Benefiting Party

An individual or group that receives advantages or profits from a particular action or agreement.