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Use the following to answer questions: 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 equal zero. Suppose that the two firms are maximizing industry profit and splitting the profit evenly. If both firms decide to cheat and produce 10 more barrels each, the price of crude oil will be: A)  $160. B)  $80. C)  $70. D)  $60.
-(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 equal zero. Suppose that the two firms are maximizing industry profit and splitting the profit evenly. If both firms decide to cheat and produce 10 more barrels each, the price of crude oil will be:


Definitions:

Cash Inflows

The receipt of money or cash equivalents into the business from various sources, including sales, investment income, and financing activities.

Required Rate

The minimum return an investor expects to achieve by investing in a project or asset.

Net Income

The company's net income, which remains after subtracting all costs and taxes from its total revenue.

Special Order

A customer request for a product made to their specific requirements, which may differ from the seller's standard offerings.

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