Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs.
-Refer to Table 17-8. If there are two suppliers of water, Victor and Sami, and if they have successfully formed a cartel and split the market evenly, then how many bottles will Sami supply?
A)100
B)200
C)300
D)400

Question

Table 17-8
For a certain small town, the table shows the demand schedule for water. Assume the marginal cost of supplying water is constant at $4 per bottle and there are no other costs. 
-Refer to Table 17-8. If there are two suppliers of water, Victor and Sami, and if they have successfully formed a cartel and split the market evenly, then how many bottles will Sami supply?
A)100 
B)200 
C)300 
D)400

Quizplus · Accepted Answer

In a cartel, the suppliers agree to split the market evenly. If the total market demand is 600 bottles, Sami, as one of the two suppliers, would supply half, which is 300 bottles.

Table 17-8 For a Certain Small Town, the Table Shows the Demand