Suppose That All the fiRms in an Oligopoly Face the Same

question 8

Multiple Choice

Suppose that all the firms in an oligopoly face the same horizontal marginal and average cost curves. If all these firms agree to co-operate, their joint profits will be maximized by producing at the level where:

• A) average revenue equals average cost.
• B) marginal revenue equals average revenue.
• C) marginal cost equals average variable cost.
• D) marginal revenue equals marginal cost.