Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.

-Refer to Table 17-9.If Acme and Pinnacle operate to jointly maximize profits and agree to share the profit equally,then how much profit will each of them earn?
A) $9,000
B) $8,750
C) $8,000
D) $6,750

Question

Table 17-9
Only two firms, Acme and Pinnacle, sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost.
 
-Refer to Table 17-9.If Acme and Pinnacle operate to jointly maximize profits and agree to share the profit equally,then how much profit will each of them earn?
A) $9,000 
B) $8,750 
C) $8,000 
D) $6,750

Quizplus · Accepted Answer

Acme and Pinnacle will each earn $9,000 in profit if they operate to jointly maximize profits and agree to share the profit equally. This is because the total profit is $18,000, and each company will receive half of that amount.

Table 17-9 Only Two Firms, Acme and Pinnacle, Sell a Particular Product