If an oligopolist's competitors follow its price cuts but ignore its price increases, the oligopolist will face a gap in its marginal revenue schedule.

A grocery store shows the influence of competition when

a. no brands of peanut butter are on the store shelf b. one brand of peanut butter is on the store shelf c. two brands of peanut butter with the same price are on the store shelf d. two brands of peanut butter with different prices are on the store shelf

Suppose a perfectly competitive cotton farmer can produce 10 containers of cotton at an output at which marginal cost equals marginal revenue. The price per container of cotton is $100 and the average total cost is $75

What is the profit or loss that this cotton farmer is earning? A) $750 B) $150 C) $250 D) -$25