Table 17-5 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. Total Revenue (Dollars) 0 350 600 750 800 750 600 350 0 Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely? O a. Each seller will sell 50 gallons and charge a price of $3. O b. Each seller will sell 30 gallons and charge a price of $5. O c. Each seller will sell 30 gallons and charge a price of $4. O d. Each seller will sell 40 gallons and charge a price of $4. Quantity (Gallons) 0 50 100 150 200 250 300 350 400 Price (Dollars per gallon) 8 7 6 5 4 3 2 1 0

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Table 17-5
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.
Total Revenue
(Dollars)
0
350
600
750
800
750
600
350
0
Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely?
O a. Each seller will sell 50 gallons and charge a price of $3.
O b. Each seller will sell 30 gallons and charge a price of $5.
O c. Each seller will sell 30 gallons and charge a price of $4.
O d. Each seller will sell 40 gallons and charge a price of $4.
Quantity
(Gallons)
0
50
100
150
200
250
300
350
400
Price
(Dollars per gallon)
8
7
6
5
4
3
2
1
0
Transcribed Image Text:Table 17-5 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. Total Revenue (Dollars) 0 350 600 750 800 750 600 350 0 Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely? O a. Each seller will sell 50 gallons and charge a price of $3. O b. Each seller will sell 30 gallons and charge a price of $5. O c. Each seller will sell 30 gallons and charge a price of $4. O d. Each seller will sell 40 gallons and charge a price of $4. Quantity (Gallons) 0 50 100 150 200 250 300 350 400 Price (Dollars per gallon) 8 7 6 5 4 3 2 1 0
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