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 both firms engage in noncooperative behavior, the industry output will be barrels, and the price of crude oil will be _.
A) 0; $160
B) 80; $80
C) 100; $60
D) 160; $0
Correct Answer:
Verified
Correct Answer:
Verified
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