Suppose That Two Firms, a and B, Collude to Share

question 48

Multiple Choice

Suppose that two firms, A and B, collude to share maximum profits.If the average cost curve for firm A is higher than the average cost curve for firm B at every output, then

• A)firm A should produce nothing.
• B)firm A should produce output as long as its marginal cost is less than firm B's.
• C)both firms should produce where their marginal costs are equal to some number that exceed marginal revenue.
• D)both firms should produce where their marginal costs are precisely equal to marginal revenue.
• E)optimal output cannot be determined from the information provided.

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Definitions:

Reference

In programming, a reference is a variable that provides a way to access the data located at a specific address in memory.

Inner Classes

Classes defined within another class, used to logically group classes that are only used in one place.

Outer Class

A class that surrounds and contains an inner class, providing scope to the inner class but not vice versa.

Finalize

A method in Java used for cleanup just before garbage collection.