Use the Figure to Answer the Following Question(s)

question 153

Multiple Choice

Use the figure to answer the following question(s) .
Figure 11-13
-Using Figure 11-13, determine the maximum joint monthly profit of the firms if they operate as a cartel.

• A) zero
• B) $1,500
• C) $3,000
• D) $4,500

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Definitions:

Economic Profits

Profits calculated by subtracting both the explicit and implicit costs from total revenues, representing the additional value created beyond all opportunity costs.

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the additional output will eventually decrease.

Biodegradable Plastic

A type of plastic that decomposes naturally by the action of living organisms, such as bacteria, making it environmentally friendly.

Agricultural Produce

Products that are grown and harvested from farming activities, including crops, fruits, vegetables, and livestock products.