Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 81

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.How much profit will Mega earn?

• A)$75
• B)$100
• C)$150
• D)$200

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Definitions:

Anopheles Mosquito

A genus of mosquitoes that serves as the primary vector for malaria in humans by transmitting the Plasmodium parasite.

Parasitic Disease

An illness caused by infections with parasitic organisms such as protozoa, worms, or insects.

Vector

An organism, typically an insect or arthropod, that transmits a disease or parasite from one animal or plant to another.

Malaria

A life-threatening disease caused by parasites that are transmitted to people through the bites of infected female Anopheles mosquitoes.