(Table: Demand for Crude Oil) Look at the table Demand for Crude Oil.Assume that the crude oil industry is a duopoly and the marginal cost of producing crude oil equals zero.Suppose that the two firms are maximizing industry profit and splitting the profit evenly.If both firms decide to cheat and produce 10 more barrels each, firm 1's profit will be , and firm 2's profit will be ______.
A)$3,200; $3,200
B)$3,200; $3,000
C)$3,000; $3,200
D)$3,000; $3,000

Question

Quizplus · Accepted Answer

If both firms cheat and produce 10 more barrels each, they will both face the same reduced price due to increased supply, leading to equal profits of $3,000 each.

(Table: Demand for Crude Oil) Look at the Table Demand