The diagrammatic representation of demand and cost curves .

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The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. Quantity Price Total Revenue (Gallons) (Dollars per gallon) (Dollars) 8 50 7 350 100 600 150 750 200 4 800 250 3 750 If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes would be most profitable for the sellers? Each seller will sell 30 gallons and charge a price of $5. Each seller will sell 50 gallons and charge a price of $3. Each seller will sell 30 gallons and charge a price of $4. Each seller will sell 40 gallons and charge a price of $4. O O

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Chapter 15, Problem 5PA

To determine

The diagrammatic representation of demand and cost curves.

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