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

---

Definitions:

Per Se Illegal

Activities or agreements that are automatically considered illegal, without needing further proof of their harm or intent.

Robinson-Patman Act

A United States federal law aimed at prohibiting anticompetitive practices by producers, specifically price discrimination.

Price Discrimination

Price discrimination occurs when a seller charges different prices to different customers for the same product or service, where such differences cannot be justified by variations in cost.

Group Boycotts

A concerted refusal by a group of businesses to deal with a particular company or a form of collective industrial action.