Use the Following to Answer Questions

question 46

Multiple Choice

Use the following to answer questions:
-(Table: Demand for Crude Oil) Look at the table Demand for Crude Oil. Assume that the crude oil industry is a duopoly and the marginal cost and fixed cost of producing crude oil equals zero. Suppose that the two firms are maximizing industry profit and splitting the profit evenly. If firm 1 decides to cheat and increase production by 10 more barrels and firm 2 continues to produce 40 barrels, firm 2 will earn profits of:

• A) $6,400.
• B) $6,300.
• C) $3,500.
• D) $2,800.

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Definitions:

Sodium Propanoate

A sodium salt of propanoic acid, used as a food preservative with the formula CH3CH2COONa.

Hydrobromic Acid

A strong acid consisting of hydrogen bromide in water, used in the synthesis of bromine compounds.

Benzoic Acid

An aromatic carboxylic acid with the formula C6H5COOH, used in the production of numerous industrial chemicals and as a food preservative.

Deprotonation

The removal of a proton (H+) from a molecule, resulting in the formation of its conjugate base.