No spacial for art

Use the following graph to answer the next 3 questions. MC 40 .35 ATC 8.31 5.30 D 25 MR 12 14 16 Q Packs of chewing gum in thousands 39. Six firms that produce chewing gum might be described as an oligopoly. The industry faces the market demand curve given by D. To maximize profits, the industry should produce packs of chewing gum and the price should be A. 12,000; $0.25 B. 12,000; $0.40 C. 14,000; $0.30 D. 16,000; $0.35 40. Same six firms as above. The firms have identical cost structures. If the industry produces the profit maximizing output level, EACH FIRM could produce: A. 2,000 packs of chewing gum. B. 12,000 packs of chewing gum C. 6,000 packs of chewing gum. D. indeterminate output levels from this information 41. Same six firms as above. Maximum profit level is: A. $0.00 B. $1,080 C. $1,800 D. Indeterminate from this information. 42. TRUE or FALSE Game Theory is best suited to analyze the behaviour of monopolistically competitive firms because while there may be a number of firms, they each pay close attention to their rivals or competitors. 43. Oligopoly is difficult to analyze primarily because: A. the number of firms is too large to make collusion possible. B. the price and output decisions of one firm depend on the reaction of its rivals. C. output may be either homogeneous or heterogeneous. D. neither allocation nor productive efficiency is achieved