Table 17-7

question 96

Multiple Choice

Table 17-7.The table shows the demand schedule for a particular product.

-Refer to Table 17-7.Suppose the market for this product is served by two duopolists who have formed a cartel and are colluding to set the price and quantity in this market.If the marginal cost to produce this product is constant at $2 per unit,then what price will the cartel set in this market?

• A) $4
• B) $5
• C) $6
• D) $7

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another.

Gold Standard

A monetary system in which a country's currency or paper money has a value directly linked to gold, providing stability and confidence in the currency's value.

Self-Correcting Mechanism

In economics, a self-correcting mechanism refers to the natural adjustment of markets in response to imbalances, restoring them to equilibrium without outside intervention.

De Facto Dollar Standard

An international financial system in which the U.S. dollar is used as the primary reserve currency by other countries, even though it may not be officially designated.