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.Acme and Pinnacle agree to maximize joint profits.However,while Acme produces the agreed upon amount,Pinnacle breaks the agreement and produces 100 more than agreed,how much profit does Pinnacle make?
A) $10,000
B) $9,000
C) $8,750
D) $7500

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.Acme and Pinnacle agree to maximize joint profits.However,while Acme produces the agreed upon amount,Pinnacle breaks the agreement and produces 100 more than agreed,how much profit does Pinnacle make?
A) $10,000 
B) $9,000 
C) $8,750 
D) $7500

Quizplus · Accepted Answer

Pinnacle's profit is $10,000 when it produces 100 more than agreed.

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