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Quick Buck and Pushy Sales Produce and Sell Identical Products

question 84

Multiple Choice

Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost.Below is the market demand and marginal revenue curves for the product. Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost.Below is the market demand and marginal revenue curves for the product.   Refer to the figure above.Quick Buck and Pushy Sales have agreed to each produce half the profit-maximizing monopolist quantity,set the monopoly price and split the profits evenly.Suppose Quick Buck cheats on Pushy Sales and reduces its price to $1.00 and Pushy Sales matches the price cut.Consumers are evenly split between the two firms.What will be the economic profit for Quick Buck? A)  $1,000 B)  $1,500 C)  $2,000 D)  $3,000
Refer to the figure above.Quick Buck and Pushy Sales have agreed to each produce half the profit-maximizing monopolist quantity,set the monopoly price and split the profits evenly.Suppose Quick Buck cheats on Pushy Sales and reduces its price to $1.00 and Pushy Sales matches the price cut.Consumers are evenly split between the two firms.What will be the economic profit for Quick Buck?


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Par Value

The face value of a bond or stock as stated by the issuer, often related to its redemption value or original stock value.

Collateralized Debt Obligation

A type of structured asset-backed security (ABS) with multiple tranches that can invest in different types of debt, including bonds and loans, which are grouped together.

Corporate Loans

Loans provided to companies to finance their operations, investments, or expansion projects.

Credit Default Swaps

Financial derivative contracts that allow an investor to swap or offset their credit risk with that of another investor.

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