Question: Two mc questions! Consider the demand for coffee shown above. Assume there are only two coffee shops in the city. The marginal cost of producing

Two mc questions! Consider the demand for coffee shown above. Assume

Two mc questions!

Consider the demand for coffee shown above. Assume there are only two coffee shops in the city. The marginal cost of producing one coffee is $0.90 dollars and there is no fixed cost. If both firms are colluding, how many coffees should the cartel sell in total and at what price? Q - 5000, P = $0.50 Q - 4000, P = $1.00 Q - 2000, P = $2.00 Q - 3000, P = $1.50 P Question 8 (1 point) In a perfectly competitive industry, with the same costs for all firms, free entry and exit, each firm will have economic profits in the long-run equilibrium. IP OP negative 41 F AN AN different AN AN zero 5 AN 2 Al positive

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