Question
Table 17-10 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
Table 17-10 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 (in gallons) | Price | Total Revenue |
0 | $8 | $0 |
50 | 7 | 350 |
100 | 6 | 600 |
150 | 5 | 750 |
200 | 4 | 800 |
250 | 3 | 750 |
300 | 2 | 600 |
350 | 1 | 350 |
400 | 0 | 0 |
Refer to Table 17-10. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely?
Group of answer choices
Each seller will sell 20 gallons, charge a price of $6, and earn a profit of $80.
Each seller will sell 30 gallons, charge a price of $5, and earn a profit of $90.
Each seller will sell 40 gallons, charge a price of $4, and earn a profit of $120.
Each seller will sell 50 gallons, charge a price of $3, and earn a profit of $50.
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