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

question 187

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. If this market were perfectly competitive instead of oligopolistic, what would the price be?

• A) $14
• B) $18
• C) $8
• D) $0

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Definitions:

Albert Bandura

A psychologist who is well-known for his work on social learning theory and the concept of self-efficacy.

Interactionist Approach

A theoretical perspective that emphasizes the combined effects of both individual characteristics (such as genetic traits) and environmental factors (such as societal influences) on human behavior.

Self-Efficacy

Refers to an individual's belief in their own ability to complete tasks and reach goals.

Latent Insecurity

A hidden or underlying feeling of uncertainty or anxiety about oneself that may not be immediately apparent.