The table shows the demand schedule for a particular product.    Quantity  Price 0 100 300 90 600 80 900 70 1200 60 1500 50 1800 40 2100 30 2400 20 2700 10 3000 0 Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quantity in this market. If the marginal cost to produce this product is constant at $40 per unit, then what price will the cartel set in this market?    a. $40    b. $50     c. $60     d. $70       e. $80

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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The table shows the demand schedule for a particular product. 

 

Quantity 

Price

0

100

300

90

600

80

900

70

1200

60

1500

50

1800

40

2100

30

2400

20

2700

10

3000

0

Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quantity in this market. If the marginal cost to produce this product is constant at $40 per unit, then what price will the cartel set in this market? 

 

a. $40    b. $50     c. $60     d. $70       e. $80 

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