Consider an industry with two firms producing similar products. Each firm's total cost (in dollars) is given below. Mega Corp: TC = 5,000 + 100Q Big Inc: TC = 4,000 + 200Q If each firm is producing 15 units, you would expect:
A. Big Inc to be able charge a lower price than Mega Corp.
B. Mega Corp to be able charge a lower price than Big Inc.
C. Both Mega Corp and Big Inc to reduce output and charge higher prices.
D. both firms to continue to produce 15 units.
Answer: B
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