Use the Following to Answer Questions

question 37

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 and fixed cost of producing crude oil equals zero. Suppose that the two firms are maximizing industry profit and splitting the profit evenly. If both firms engage in noncooperative behavior, the industry output will be _____ barrels, and the price of crude oil will be _____.

• A) 0; $160
• B) 80; $80
• C) 100; $60
• D) 160; $0

Analyze and compute optimal capital-labor ratios and their implications for firm output and costs.

Understand economies of scale and their impact on long-run average and marginal costs.

Understand and apply the concept of economies of scope in joint production decisions.

Analyze the influence of technological changes on production possibilities and cost structures.

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A region comprising the western part of Europe, known for its developed economies, democratic governments, and high standards of living.

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Policies that support members of disadvantaged groups that have previously suffered discrimination in areas like education and employment.

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The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases involving matters of federal law.