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Question: Look at the table Demand for Crude Oil. Assume that the  oil industry is a duopoly and the margin...

Show transcribed image text Look at the table Demand for Crude Oil. Assume that the oil industry is a duopoly and the marginal cost of producing crude oil is zero. If the two collude to share the market equally, the price of crude oil will be ____, firm 1 will ____ barrels, firm 2 will produce _____ barrels, and each firm will earn revenue _____. A) $80; 80; 80; $6, 400 B) $80; 40; 40; $3, 200 C) $60; 50; 50; $3,000 D) $40; 60; 60; $2, 400 A firm operating in a monopolistically competitive market is producing a quantity = MR. Profit: A) can be increased by increasing production. B) is maximized. C) can be increased by decreasing the price. D) is maximized only if MC = P. If a firm operating in monopolistic competition is producing a quantity profit can be ____ by ____. A) increased; decreasing production B) Increased; increasing production C) increased; increasing the price D) maximized; decreasing production If a firm operating in monopolistic competition is producing a the marginal decision rule tells us that profit _____. A) MC > MR; can be increased by increasing production B) MC MC. B) people would be better off if output were reduced. C) output could be increased without an increase in D) to maximize profits, firms set MR = MC, and people reduced.

Look at the table Demand for Crude Oil. Assume that the oil industry is a duopoly and the marginal cost of producing crude oil is zero. If the two collude to share the market equally, the price of crude oil will be ____, firm 1 will ____ barrels, firm 2 will produce _____ barrels, and each firm will earn revenue _____. A) $80; 80; 80; $6, 400 B) $80; 40; 40; $3, 200 C) $60; 50; 50; $3,000 D) $40; 60; 60; $2, 400 A firm operating in a monopolistically competitive market is producing a quantity = MR. Profit: A) can be increased by increasing production. B) is maximized. C) can be increased by decreasing the price. D) is maximized only if MC = P. If a firm operating in monopolistic competition is producing a quantity profit can be ____ by ____. A) increased; decreasing production B) Increased; increasing production C) increased; increasing the price D) maximized; decreasing production If a firm operating in monopolistic competition is producing a the marginal decision rule tells us that profit _____. A) MC > MR; can be increased by increasing production B) MC MC. B) people would be better off if output were reduced. C) output could be increased without an increase in D) to maximize profits, firms set MR = MC, and people reduced.