Use the Following to Answer Question

question 128

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 but Ray continues to sell 200 gadgets,Ray's profits will be:

• A)$1,400.
• B)$1,250.
• C)$600.
• D)$400.

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Definitions:

Record of Transactions

A detailed log or document that keeps track of all the transactions made within a certain period.

Market Value

The estimated amount for which a property or asset would exchange on the date of valuation between a willing buyer and a willing seller.

Destroyed by Fire

The state of being damaged or annihilated as a result of combustion or intense heat.

Automatically Terminated

refers to a process or condition under which a contract, agreement, or permission ceases to be in effect automatically due to specific conditions being met without the need for manual intervention or notification.