The Figure Below Shows the Result of a Price Fixing

question 43

Multiple Choice

The figure below shows the result of a price fixing scheme that raised price above competitive levels at point C to a price of $15 at point M. When antitrust enforcement agents break up this price-fixing cartel,producers will lose $__________ of producer surplus.

• A)$5,000
• B)$15,000
• C)$20,000
• D)$31,250

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