Homework Help is Here – Start Your Trial Now!
Business
Economics
0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here

0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
Solve both will upvote as they are subparts. Hand written solution is not allowed.
0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here
Transcribed Image Text:0 o There are two gas stations in a small isolated town. The market demand for gasoline is given by P-8-0.25xQ, where Q is the quantity of gas in thousands of gallons and P is the price of gas in dollars per gallon. Each station can supply any quantity of gasoline at a constant marginal cost of $1 per gallon. There are no fixed costs. Both stations sell the same regular gas, and the differences in location, service, etc. don't matter to consumers. Question 4 Fill in the Blanks Antwers typed in all of the blanks will be automatically saved 口 O If the gas stations compete in a free market, each will supply Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of S Type your answer here
Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here
Transcribed Image Text:Question 5 Fill in the Blanks Answers typed in all of the blanks will be automatically saved. X X Ω If the gas stations collude and agree to evenly split the market, each station will supply R Type your answer here gallons of gas, sell it at $ Type your answer here per gallon, and earn an economic profit of $ Type your answer here
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS