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Market Demand Is Given by P = 15 - Q

Question 48

Multiple Choice

Market demand is given by P = 15 - Q. There are two firms, each with TC = 0.5qi2. If one firm honors the cartel agreement while the other firm defects, the output produced by the defecting firm is:


A) 2.
B) 4.
C) 8.
D) 12.

Correct Answer:

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