Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 52

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.If Acme and Mega decide to collude and work as a pure monopolist such that each firm will produce half the quantity demanded by the market,what will be the economic profit for Mega?

• A)$0
• B)$50
• C)$100
• D)$150

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