Multiple Choice
(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 firm 1 decides to cheat and increase production by 10 more barrels, firm 1 will earn profits of:
A) $6,400.
B) $6,300.
C) $3,500.
D) $2,800.
Correct Answer:
Verified
Correct Answer:
Verified
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