Examlex

Solved

Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 113

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. 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.If Acme matches the price cut and customers are evenly split between the two firms,what will Acme's economic profit be? A) $75 B) $100 C) $150 D) $200
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.If Acme matches the price cut and customers are evenly split between the two firms,what will Acme's economic profit be?


Definitions:

Blue-collar Workers

Employees who engage in manual labor or skilled trades, often distinguished by the physical nature of their work and hourly wages.

Quadrupled

To increase fourfold or multiply by four, often used in describing growth or expansion in quantitative terms.

Growing Population

The increase in the number of individuals in a population, often discussed in the context of social, economic, and environmental impacts.

Women Office Workers

Refers to females employed in office settings, performing a range of clerical and administrative duties.

Related Questions