Multiple Choice
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.
Correct Answer:

Verified
Correct Answer:
Verified
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