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:

Government

The system or group of people governing an organized community, often a state, including institutions and individuals that hold the authority to make laws and regulations.

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.

Estate

The total of all the assets, properties, and liabilities that a person leaves behind upon death.

Fraud

(1) An intentional deception that causes harm to another. (2) A basis for contesting a will if the testator relied on false statements when he or she made the will.