Suppose Acme and Mega Produce and Sell Identical Product with Zero

question 41

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.If Acme and Mega decide to collude and work as a pure monopolist such that each firm will produce half the quantity demanded by the market,what will be the economic profit for Mega?

• A) $0
• B) $50
• C) $100
• D) $150

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Definitions:

Primitive Symbols

Basic or rudimentary forms of representation used to convey meanings or concepts without the use of words.

Tertiary Circular Reactions

In Piaget's stages of cognitive development, this phase (12-18 months) involves the purposeful adaptation of established schemes to new situations.

Secondary Circular Reactions

Repetitive actions in infants (4-8 months old) focused on external objects as a means to learn about their environment.

Coordination

The capacity to coordinate various body parts seamlessly and effectively.