Table 17-4
The table shows the town of Mauston's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline.
-Refer to Table 17-4. Suppose there are exactly two sellers of gasoline in Mauston: Shellon and Standstop. If Shellon sells 150 gallons and Standstop sells 200 gallons, then
A)Shellon's profit is $450 and Standstop's profit is $600.
B)Shellon's profit is $1,050 and Standstop's profit is $1,200.
C)the two firms are colluding and earn monopoly profits.
D)consumers in Mauston are worse off than they would be if the two firms colluded.

Question

Table 17-4
The table shows the town of Mauston's demand schedule for gasoline. For simplicity, assume the town's gasoline seller(s) incur no costs in selling gasoline. 
-Refer to Table 17-4. Suppose there are exactly two sellers of gasoline in Mauston: Shellon and Standstop. If Shellon sells 150 gallons and Standstop sells 200 gallons, then
A)Shellon's profit is $450 and Standstop's profit is $600. 
B)Shellon's profit is $1,050 and Standstop's profit is $1,200. 
C)the two firms are colluding and earn monopoly profits. 
D)consumers in Mauston are worse off than they would be if the two firms colluded.

Quizplus · Accepted Answer

Shellon's profit is $450 and Standstop's profit is $600.

Table 17-4 the Table Shows the Town of Mauston's Demand Schedule for Schedule