Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 27

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.Mega would then sell ____ units and Acme would sell _____ units.

• A) 150;50
• B) 100;50
• C) 150;0
• D) 100;0

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Definitions:

Sale

The exchange of a commodity or service for money or its equivalent; also, an event where goods are offered at reduced prices.

Preparation

Preparation involves the actions taken to ready something for use or consideration, often entailing planning and organization.

Real Estate

The property consisting of land or buildings, its natural resources, and any associated rights. It encompasses the buying, selling, and leasing of these properties.

Chapter 11

Chapter 11 is a provision under the U.S. Bankruptcy Code that allows businesses to reorganize their debts and try to become profitable, while continuing operations.