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

question 232

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 quantity would be produced?

• A)25
• B)35
• C)50
• D)70

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Definitions:

Consumption Bundle

A collection of goods and services that an individual or household purchases over a given period.

Partnership Termination

The dissolution or ending of a partnership agreement, which involves the winding up of its business activities.

Liquidation

The process of converting assets into cash or cash equivalents by selling them on the open market.

Winding Up

The process of collecting and distributing the firm’s assets after a partnership or corporation has been dissolved.