Author Question: Suppose the market demand curve is P = 40 - 2Q and the constant marginal cost of production is MC = ... (Read 140 times)

wenmo · **on:** Jul 1, 2018

Suppose the market demand curve is P = 40 - 2Q and the constant marginal cost of production is MC = 20. Which of the following is a valid expression for the collusion curve?

A) Q = 5
B) Q1 = 5 - Q2
C) Q1 = Q2 = 5
D) Q1 = 40 - Q2

Question 2

Bundling raises higher revenues than selling the goods separately when

A) demands for two goods are highly positively correlated.
B) demands for two products are mildly positively correlated.
C) demands for two products are negatively correlated.
D) there is a perfect positive correlation between the demands for two goods.
E) the goods are complementary in nature.