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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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Analysis Phase

The stage in a project or process where data is collected and examined to understand problems, needs, or opportunities before developing solutions.

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A systematic process of determining and addressing gaps between current conditions and desired conditions or needs, often in organizational or project planning.

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