Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 47

Multiple Choice

Suppose Acme and Mega produce and sell identical product with zero marginal and average cost.Following is the market demand and marginal revenue curves for the product.
Refer to the figure above.Suppose Mega and Acme have colluded to work as a pure monopolist,but Mega cheats on Acme and reduces its price to $1.00 each.Mega would then sell ____ units and Acme would sell _____ units.

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

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Definitions:

Controlling

In management, controlling refers to the process of monitoring performance, comparing it with goals, and taking corrective action as needed to ensure that objectives are achieved.

Pricing

The process of determining the value that will be charged for a product or service.

Primary Functions

The main or core activities that are essential for the operation of a business or organization.

Organizations

Entities comprising of individuals working together towards a common goal or objective, structured and managed to meet a need or to pursue collective goals.