If someone could explain this neatly pleaseNote:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. The inverse market demand curve is P = 170 - 40. Two firms in this market evenly split the output. Each firm produces itsproduct at a constant marginal cost of $10. Which of the following statements is/are TRUE?I. If one firm produces 2 more units of output, its profits will rise to $864.II. If neither firm cheats, each firm will earn a profit of $800.III. If one firm produces 3 more units of output, the other firm's profits will fall to $680.I and III and IIIII and IIII, II, and III

Demand Curve = P = 170-4QMC = 10

Answered: The inverse market demand curve is P =…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

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If someone could explain this neatly please Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.

The inverse market demand curve is P = 170 - 40. Two firms in this market evenly split the output. Each firm produces its
product at a constant marginal cost of $10. Which of the following statements is/are TRUE?
I. If one firm produces 2 more units of output, its profits will rise to $864.
II. If neither firm cheats, each firm will earn a profit of $800.
III. If one firm produces 3 more units of output, the other firm's profits will fall to $680.
I and II
I and III
II and III
I, II, and III

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