The Figure Given Below Shows a Situation Where the Producers

question 58

Multiple Choice

The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output. If the producers of good X form a cartel and use monopoly pricing, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

• A)$500; $10 billion
• B)$600; $90 billion
• C)$1,000; $60 billion
• D)$1,000; $40 billion

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Definitions:

Edible Plant Parts

Components of plants that can be consumed safely by humans or animals, such as fruits, leaves, seeds, and roots.

Equally Abstract

Equally Abstract refers to concepts or terms that share the same level of abstraction or generality, lacking specific, concrete examples or attributes.

Concept

An abstract idea or a general notion that represents something in the mind of the individual.

Genus

In biology, a rank in the classification hierarchy that is above species and below family, grouping together species that share common characteristics.