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-The Market Demand Shown in the Diagram Above Represents the Demand

Question 49

Multiple Choice

-The market demand shown in the diagram above represents the demand curve shared by two non-collusive and independent firms of equal size and efficiency,each with zero marginal cost.If neither of the existing firms wants to change the situation,to ensure a stable and profitable market for both firms,each firm will produce ___ bottles/day and each will charge a price of ____/bottle. A) 1100;$0.90 B) 1000;$0.90 C) 1000;$1.00 D) 500;$1.00 E) 500;$1.50
-The market demand shown in the diagram above represents the demand curve shared by two non-collusive and independent firms of equal size and efficiency,each with zero marginal cost.If neither of the existing firms wants to change the situation,to ensure a stable and profitable market for both firms,each firm will produce ___ bottles/day and each will charge a price of ____/bottle.


A) 1100;$0.90
B) 1000;$0.90
C) 1000;$1.00
D) 500;$1.00
E) 500;$1.50

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