Table 17-11 Only Two Firms, ABC and XYZ, Sell a Particular Product

question 167

Multiple Choice

Table 17-11
Only two firms, ABC and XYZ, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $8 and zero fixed cost.

-Refer to Table 17-11. ABC and XYZ agree to jointly maximize profits. If ABC and XYZ each break the agreement and each produce 5 more than agreed upon, how much less profit does each make?

• A) $5
• B) $20
• C) $60
• D) $90

---

Definitions:

Same Sex

Pertaining to a relationship or attraction between two individuals of the same gender.

Cross-Sectional Research

A research method that analyzes data from a population, or a representative subset, at a specific point in time to examine relationships between variables.

Longitudinal Research

A study design that involves repeated observations of the same variables over a period of time, often years or even decades.

Intelligence Levels

Varying degrees of cognitive capacity among individuals, including problem-solving, learning, adaptation, and understanding complex concepts.