Quick Buck and Pushy Sales Produce and Sell Identical Products

question 29

Multiple Choice

Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. If Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price, then what will be Quick Buck's economic profit?

• A)$1,000
• B)$2,000
• C)$3,000
• D)$4,000

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Definitions:

G Protein-Linked Receptors

A large family of cell surface receptors that, when activated by a ligand, initiate a signal transduction pathway involving G proteins.

Transmembrane Proteins

Proteins that span the entire lipid bilayer of a cell membrane, involved in various functions such as signal transduction and transportation of substances.

Intracellular Signal

A form of communication within cells where signals are transmitted to elicit a specific response.

Pituitary Dwarfism

A condition characterized by abnormally short stature caused by insufficient production of growth hormone by the pituitary gland.