Suppose Acme and Mega Produce and Sell Identical Products and Face

question 14

Multiple Choice

Suppose Acme and Mega produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega will then sell ______ units and Acme will sell ______ units.

• A)150; 50
• B)100; 50
• C)150; 0
• D)100; 0

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Definitions:

Postpartum Depression

A complex mix of physical, emotional, and behavioral changes that many women experience after giving birth, characterized by sadness, fatigue, and anxiety.

Apgar Scale

A quick test performed on a newborn at 1 and 5 minutes after birth. The 1-minute score determines how well the baby tolerated the birthing process. The 5-minute score tells the healthcare provider how well the baby is doing outside the mother's womb.

Epidurals

A form of regional anesthesia involving an injection into the epidural space of the spine to block pain in a particular region of the body.

Behavioral Teratogens

Substances or exposures that can lead to developmental malformations or psychological issues due to prenatal exposure.