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:

Double Bind

A psychological predicament in which an individual receives two or more conflicting messages, and one message negates the other, making it difficult to appropriately respond.

Avolition

A lack of motivation or inability to initiate and persist in goal-directed activities, often seen in psychiatric disorders.

Atypical Antipsychotic Drugs

A class of medications used to treat psychiatric conditions, distinguished from earlier antipsychotics by their different chemical structure and lower risk of certain side effects.

Schizophrenia Symptoms

The clinical manifestations of schizophrenia, such as hallucinations, delusions, disorganized speech, and impaired cognitive functioning.