The market inverse demand curve is P = 60 –Q. The three firms in this industry are acting like a monopolist, evenly splitting output. The marginal cost is $6. Suppose one of the firms produces an additional unit of output. The cheating firm's profit will change from: $50 to $40. $243 to $260. $230 to $252. $34 to $67.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
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The market inverse demand curve is P = 60 – Q. The three firms in this industry are acting like a monopolist, evenly
splitting output. The marginal cost is $6. Suppose one of the firms produces an additional unit of output. The cheating
firm's profit will change from:
$50 to $40.
$243 to $260.
$230 to $252.
$34 to $67.
Transcribed Image Text:The market inverse demand curve is P = 60 – Q. The three firms in this industry are acting like a monopolist, evenly splitting output. The marginal cost is $6. Suppose one of the firms produces an additional unit of output. The cheating firm's profit will change from: $50 to $40. $243 to $260. $230 to $252. $34 to $67.
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