Two Firms (A and B)have Marginal Costs MC_A and MC_B,marginal

question 25

Multiple Choice

Two firms (A and B) have marginal costs MC_A and MC_B,marginal revenues MR_A and MR_B,and market marginal revenue MR.If both firms produce as a cartel,they should produce so that:

• A) MC_A = MC_B = MR.
• B) MC_A = MR_A and MC_B = MC_B.
• C) MC_A + MC_B = MR.
• D) MC_A + MC_B = MR_A + MR_B, not necessarily MC_A = MR_A.
• E) MC_A = MC_B = MR_A + MR_B.

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