Table 17-10 The Table Shows the Demand Schedule for a Particular Product

question 321

Multiple Choice

Table 17-10
The table shows the demand schedule for a particular product.
-Refer to Table 17-10. Suppose the market for this product is served by two firms 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 $40 per unit, then what price will the cartel set in this market?

• A)$40
• B)$50
• C)$60
• D)$70

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Definitions:

Franchise

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Termination Provisions

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