Use the Following to Answer Question

question 74

Multiple Choice

Use the following to answer question:
-(Table: Demand Schedule of Gadgets) Use Table: Demand Schedule of 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 quantity effect will be a(n) _____ in profit of _____.

• A)decrease;$100
• B)increase;$100
• C)increase;$300
• D)decrease;$300

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Definitions:

Third-party Claimant

An individual or entity that claims rights or seeks remedies under a contract to which they are not a direct party.

Bailee

A bailee is an individual or entity temporarily entrusted with possession of personal property for a specific purpose, but without ownership rights.

Bailor

The owner of bailed property; the one who delivers personal property to another to be held in bailment.

Property

Assets or possessions belonging to an individual or entity, which can include physical items, real estate, intellectual property, and other rights of ownership.