The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 108

Multiple Choice

The diagram below shows demand and cost curves for a monopolistically competitive firm.
FIGURE 11- 3
-The following statements describe a cooperative equilibrium in an oligopoly where the firms are jointly maximizing profits by restricting output.Which statement is false?

• A)MR > MC for each individual firm.
• B)No individual firm will have an incentive to change output.
• C)An individual firm could increase profits by cheating.
• D)The firms in the industry will jointly be earning monopoly profits.
• E)P > MC for each individual firm.

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