Quick Buck and Pushy Sales Produce and Sell Identical Products

question 81

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.
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 each while Pushy Sales continues to comply with the collusive agreement.Quick Buck would then sell _____ units and Pushy Sales would sell ______ units.

• A) 0;3,000
• B) 1,500;1,500
• C) 2,000;1,000
• D) 3,000;0

Identify the characteristics of regressive, proportional, and progressive taxes and their impact on taxpayers.

Understand the implications of tax shifting mechanisms and how they affect the distribution of tax burdens.

Analyze scenarios to determine the excess burden and total burden of specific taxes.

Examine the impact of taxes on consumer surplus and market efficiency.

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Definitions:

Cognitive Advancement

The development and improvement in mental processes such as thinking, problem-solving, and decision-making.

Internal Thought

The process of thinking that occurs within an individual's mind without external verbalization, involving various cognitive functions such as reasoning, remembering, and problem-solving.

Intermodal Perception

The process of combining information from more than one sensory system, such as visual and auditory senses.

Working Memory

A cognitive system responsible for temporarily holding information available for processing.