The Following Figure Shows the Market Demand Curve [DD'],the Supply

question 45

Multiple Choice

The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S_F],the cartel's marginal cost curve [MC₀],and the cartel's marginal revenue curve [MR₀].Assume that the cartel behaves like a dominant firm.
-Refer to Figure 13-2.If the market had been perfectly competitive,the equilibrium price and output would be _____ respectively.

• A)P_C and Q_T
• B)P and Q₀
• C)P_C and Q_F
• D)P and Q_F

---

Definitions:

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing sweat glands, hair follicles, and blood vessels.

Glossopharyngeal

The ninth cranial nerve, which is involved in tasting, swallowing, and the gag reflex, as well as controlling some muscles and salivary glands.

Trigeminal

Pertaining to the trigeminal nerve, which is the fifth cranial nerve responsible for sensation in the face and motor functions such as biting and chewing.

Cranial Nerve

One of twelve pairs of nerves that originate in the brain and primarily serve the head and neck (except the vagus nerve which extends to the abdomen).