Use the following to answer question:
-(Table: Demand Schedule of Gadgets)Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets at a marginal cost of $2 and no fixed cost.Suppose that these two producers have formed a cartel,agreed to split production of output evenly,and are maximizing total industry profits.If Margaret decides to cheat on the agreement and sell 100 more gadgets,how many gadgets will Margaret sell?
A)500
B)200
C)300
D)600

Question

Use the following to answer question: 
-(Table: Demand Schedule of Gadgets)Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets at a marginal cost of $2 and no fixed cost.Suppose that these two producers have formed a cartel,agreed to split production of output evenly,and are maximizing total industry profits.If Margaret decides to cheat on the agreement and sell 100 more gadgets,how many gadgets will Margaret sell?
A)500 
B)200 
C)300 
D)600

Quizplus · Accepted Answer

If Margaret cheats and sells 100 more gadgets than agreed, she will sell 300 gadgets, assuming the original agreement was to split the production evenly at 200 gadgets each.

Use the Following to Answer Question