If the Cartel Described by the Accompanying Diagram Is Broken

question 34

Multiple Choice

If the cartel described by the accompanying diagram is broken up and forced into a perfectly competitive market situation,the optimal output and price will be:

• A) Q = 200 and P = $80.
• B) Q = 260 and P = $60.
• C) Q = 250 and P = $80.
• D) Q = 250 and P = $75.
• E) Q = 500 and P = $60.