Table 17-8.For a certain small town,the table shows the demand schedule for water.Assume the marginal cost of supplying water is constant at $4 per bottle.
-Refer to Table 17-8.If there are two suppliers of water,Mort and Callie,and if they have successfully formed a cartel,then what would be the price and the market quantity?
A) The price would be $7 per bottle and the market quantity would be 300 bottles.
B) The price would be $6 per bottle and the market quantity would be 400 bottles.
C) The price would be $5 per bottle and the market quantity would be 500 bottles.
D) The price would be $4 per bottle and the market quantity would be 600 bottles.
Correct Answer:
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