Use the Following to Answer Questions

question 131

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and no fixed cost. Suppose that these two producers have formed a cartel, agreed to split production of output evenly, and are maximizing total industry profits. If Margaret decides to cheat on the agreement and sell 100 more gadgets, Margaret's profit will be _____, and Ray's profit will be _____.

• A) $1500; $1,000
• B) $900; $600
• C) $1,400; $1,000
• D) $1,000; $1,400

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Definitions:

Square

A mathematical operation involving multiplying a number by itself, or a geometric figure with four equal sides and four right angles.

Flow Rate

The volume of fluid that passes a point in a given time, commonly used in contexts such as plumbing, rivers, and other fluid systems.

Variation Terminology

Language and terms used to describe changes or differences in variables or conditions.

Directly

In a straight and unambiguous manner, often indicating a direct relationship between variables in mathematics.