0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here
0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:0
o
There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the
quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of
gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the
differences in location, service, etc. don't matter to consumers.
Question 4
Fill in the Blanks
Antwers typed in all of the blanks will be automatically saved
口
O
If the gas stations compete in a free market, each will supply Type your answer here
gallons of
gas, sell it at $ Type your answer here
per gallon, and earn an economic profit of S
Type your answer here
Transcribed Image Text:Question 5
Fill in the Blanks
Answers typed in all of the blanks will be automatically saved.
X
X
Ω
If the gas stations collude and agree to evenly split the market, each station will supply
R
Type your answer here
gallons of gas, sell it at $ Type your answer here
per gallon, and earn
an economic profit of $ Type your answer here
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