Table: Demand Schedule of Gadgets Price of a Gadget Quantity of Gadgets Demanded
ID: 1201376 • Letter: T
Question
Table: Demand Schedule of Gadgets Price of a Gadget Quantity of Gadgets Demanded $10 100 200 300 500 600 4 800 900 1,000 Reference: Ref 31-1 -(Table: Demand Schedule for Gadgets) Examine the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and fixed cost of $0. The table shows the market demand schedule for gadgets. Suppose that these two producers have formed a cartel and agreed to split production of output evenly and are maximizing total industry profits. If Margaret decides to cheat on the agreement and sell 100 more gadgets, Margaret's price effect will be a(n) O decrease in profit of $400 increase in profit of $400 O increase in profit of $200 O decrease in profit of $200Explanation / Answer
4. both monopolistic competition and perfect competition
Profit maximising condition under Perfect competition = P = AR = MC = MR
Profit maximising condition under Monopolistic competition = MR = MC
5. increase demand for its product
A monopolist sell differentiated products in the market so to provide knowledge to the producers about their product, they advertise.
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