Figure: Demand 2 Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
A) $24; $4
B) $28; $14
C) $84; $32
D) $12; $8

Question

Figure: Demand 2  Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
A) $24; $4 
B) $28; $14 
C) $84; $32 
D) $12; $8

Quizplus · Accepted Answer

The Answer of Figure: Demand 2  Two firms in an industry act as a cartel, with each firm agreeing to charge a price of $16 and sell two units of output. If one of them cheats and produces two more units of output, the cheating firm's total revenue increases by ______ and the other firm's total revenue decreases by ______.
A) $24; $4 
B) $28; $14 
C) $84; $32 
D) $12; $8

Figure: Demand 2 Two Firms in an Industry Act