Solved

Table 17-5
the Table Shows the Town of Driveaway's Demand

Question 155

Multiple Choice

Table 17-5
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost.


 Quantity  (Gallons)   Price  (Dollars per gallon)   Total Revenue  (Dollars)  08050735010066001505750200480025037503002600350135040000\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Quantity } \\\text { (Gallons) }\end{array} & \begin{array} { c } \text { Price } \\\text { (Dollars per gallon) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (Dollars) }\end{array} \\\hline 0 & 8 & 0 \\\hline 50 & 7 & 350 \\\hline 100 & 6 & 600 \\\hline 150 & 5 & 750 \\\hline 200 & 4 & 800 \\\hline 250 & 3 & 750 \\\hline 300 & 2 & 600 \\\hline 350 & 1 & 350 \\\hline 400 & 0 & 0 \\\hline\end{array}
-Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely?


A) Each seller will sell 20 gallons, charge a price of $6, and earn a profit of $80.
B) Each seller will sell 30 gallons, charge a price of $5, and earn a profit of $90.
C) Each seller will sell 40 gallons, charge a price of $4, and earn a profit of $120.
D) Each seller will sell 50 gallons, charge a price of $3, and earn a profit of $50.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents