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