A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month.
-Refer to the information above. What is the vertical intercept of the demand curve?
A) 0.50
B) 500,000
C) 100,000
D) 0.20
Correct Answer:
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