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Question 194

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Use the following to answer questions: Use the following to answer questions: -(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 the industry is operating in perfect competition, 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
-(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 the industry is operating in perfect competition, 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

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