Table 17-9 The Table Shows the Demand Schedule for a Particular Product

question 129

Multiple Choice

Table 17-9
The table shows the demand schedule for a particular product.
-Refer to Table 17-9. Suppose the market for this product is served by two firms that have formed a cartel. What price will the cartel charge in this market if the marginal cost of production is $0?

• A)$6
• B)$8
• C)$10
• D)$12

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Definitions:

Perfect Substitute

Goods that can be used in place of one another with no loss of utility to the consumer.

Utility Function

A mathematical representation of how consumers rank different bundles of goods based on the level of satisfaction or utility those goods provide.

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, depicting preferences for consumption bundles.

Apples

Edible fruits produced by an apple tree, known scientifically as Malus domestica, and popular worldwide for their sweet taste and nutritional benefits.