The Figure Given Below Shows a Situation Where the Producers

question 31

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. A declining market share of the cartel would lead to a:

• A)rightward shift of the cartel marginal cost curve and a rise in cartel output.
• B)rightward shift of the cartel demand curve and a fall in output.
• C)leftward shift of the cartel marginal cost curve and a rise in output.
• D)leftward shift of the cartel demand curve and a fall in cartel output.