The Following Table Shows a Small Community's Demand for Monthly

question 92

Multiple Choice

The following table shows a small community's demand for monthly subscriptions to a streaming movie service.Assume that only two firms (Nextflix and Flixbuster) sell in this market,that each firm offers the same quality of service and movie selection,and that each firm's marginal cost is constant and equal to 0 (zero) due to excess capacity.Use this information to answer the following questions:

-If the two firms operating in this market agreed to each supply one-half of the quantity a monopolist would supply,the contract would specify that

• A) Nextflix supplies 400 subscriptions and Flixbuster supplies 100 subscriptions.
• B) Flixbuster supplies 400 subscriptions and Nextflix supplies 100 subscriptions.
• C) Nextflix supplies 0 (zero)subscriptions and Flixbuster supplies 500 subscriptions.
• D) Flixbuster supplies 0 (zero)subscriptions and Nextflix supplies 500 subscriptions.
• E) Nextflix supplies 250 subscriptions and Nextflix supplies 250 subscriptions.

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Definitions:

Fraudulently Induces

To cause someone to act or make a decision based on deception, often leading to legal harm or damage.

Note

In financial contexts, a note is a legal document representing a loan or a promise to pay a specific sum of money at a future date.

Sells

Involves transferring ownership of a good or service to a buyer for a price.

HDC Status

An abbreviation for Holder in Due Course Status, it refers to a legal shield that provides protection for the possessor of a negotiable instrument from certain defenses if the instrument was acquired in good faith.