Use the Following Figure to Answer the Question : Figure

question 97

Multiple Choice

Use the following figure to answer the question : Figure 13-2 : 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:

Defective Parts

Components of a product that are faulty, malfunctioning, or fail to meet quality standards.

Anticipatory Breach

Occurs when one party to an agreement indicates they will not fulfill their contractual obligations, allowing the other party to take legal action before the breach occurs.

Bush Pilot

A pilot who operates aircraft, often small planes, in remote and undeveloped areas, typically for the purposes of transporting goods or passengers to locations without established runways.

Remote Part

A component or aspect that is distantly or indirectly related to the main subject or event.