Table 17-4Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost.Price(Dollars per unit)1413121111109877655A432210Quantity Demanded Total Revenue(Dollars)065120QUESTION 9(Units)051015202025303540455055606570165200200225240245240225200165120650Refer to Table 17-4. If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn?O a. $125.00O b. $62.50O c. $225.00O d. $24.00

Oligopoly is a market structure defined by a small number of large firms or companies that dominate…

Table 17-4 Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost. Price (Dollars per unit) 14 13 12 11 10 10 9 8 2 7 6 5 4 3 2 1 0 Quantity Demanded Total Revenue (Dollars) 0 65 120 165 200 225 QUESTION 9 (Units) 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 240 240 245 240 225 200 165 120 65 0 Refer to Table 17-4. If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? O a. $125.00 O b. $62.50 Oc. $225.00 O d. $24.00

Table 17-4 Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost. Price (Dollars per unit) 14 13 12 11 10 10 9 8 2 7 6 5 4 3 2 1 0 Quantity Demanded Total Revenue (Dollars) 0 65 120 165 200 225 QUESTION 9 (Units) 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 240 240 245 240 225 200 165 120 65 0 Refer to Table 17-4. If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? O a. $125.00 O b. $62.50 Oc. $225.00 O d. $24.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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