Use the following to answer question:
-(Table: Demand Schedule of Gadgets)Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets with no marginal cost or fixed cost.Suppose that these two producers have formed a cartel,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,the market price of gadgets will be:
A)$4.
B)$5.
C)$6.
D)$7.

Question

Use the following to answer question: 
-(Table: Demand Schedule of Gadgets)Use Table: Demand Schedule of Gadgets.The market for gadgets consists of two producers,Margaret and Ray.Each firm can produce gadgets with no marginal cost or fixed cost.Suppose that these two producers have formed a cartel,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,the market price of gadgets will be:
A)$4. 
B)$5. 
C)$6. 
D)$7.

Quizplus · Accepted Answer

Without the specific details from the "Demand Schedule of Gadgets" table, it's impossible to calculate the exact impact of Margaret's decision to sell 100 more gadgets on the market price. However, generally, if a member of a cartel increases their production beyond the agreed amount, it typically leads to an oversupply in the market, which would decrease the market price. The correct answer would depend on the specifics of the demand schedule provided in the table, which outlines how price varies with quantity. Since the exact details are missing, the answer provided is based on common economic principles regarding supply, demand, and cartel behavior.

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