The Figure Given Below Represents the Total Output and Price

question 51

Multiple Choice

The figure given below represents the total output and price produced in an oligopoly market characterized by a dominant firm and a fringe.SF represents the supply curve of the fringe, D is the market demand curve, DRES represents the residual demand curve of the dominant firm, MRRES represents the residual marginal revenue curve of the dominant firm, and MCD represents the marginal cost of the dominant firm.


-Refer to Figure .What will be the fringe's profit maximizing output?

• A)0.6 unit
• B)0.3 unit
• C)1.6 units
• D)2.6 units

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Definitions:

Low Risk

Situations or investments that have a minimal chance of loss or failure.

High Risk

refers to situations or activities with a high potential for loss or danger, often in the context of investments or decisions.

Insurance

A financial product that provides protection against possible future losses in exchange for a premium.

Adverse Selection

A situation where asymmetrical information leads to a mismatch between buyers and sellers, with one party having more or better information than the other.