Use the Following to Answer Questions -(Table: Demand for Crude Oil)Use Table: Demand for Crude Oil
Use the following to answer questions :
-(Table: Demand for Crude Oil) Use Table: Demand for Crude Oil.Assume that the crude oil industry is a duopoly and the marginal and fixed costs of producing crude oil equal zero.Suppose that the two firms are maximizing industry profit and splitting the profit evenly.If firm 1 decides to cheat and increase production by 10 more barrels and firm 2 continues to produce 40 barrels,firm 2 will earn profits of:
A) $6 400.
B) $6 300.
C) $3 500.
D) $2 800.
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