Use the Following to Answer Questions

question 94

Multiple Choice

Use the following to answer questions :
Scenario: Two Identical Firms
Two identical firms make up an industry in which the market demand curve is represented by Q = 5 000 - 4P,where Q is the quantity demanded and P is the price per unit.The marginal cost of producing the good in this industry is constant and equal to $650.Fixed cost is zero.
-(Scenario: Two Identical Firms) Use Scenario: Two Identical Firms.When the firms collude and produce the profit-maximizing output,what is the profit earned by each firm if they split production equally?

• A) $360 000
• B) $180 000
• C) $15 000
• D) $25 000

---

Definitions:

Anti-Racist Pedagogy

An educational approach aimed at understanding and challenging the structures and behaviors that perpetuate systemic racism.

Racism

Prejudice, discrimination, or antagonism directed against individuals or groups based on their race or ethnicity.

Satisfaction Clauses

Contractual provisions requiring one party's performance to meet the subjective approval of another, often related to quality or aesthetics.

Objective Standard

A universal, unbiased criterion used to evaluate actions, situations, or decisions, not influenced by personal feelings or opinions.