Use the Following Figure to Answer the Question : Figure

question 85

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.Which of the following statements is true?

• A)The residual demand curve is less elastic than the market demand curve.
• B)The difference between Q_F and Q₀ represent the inefficiency in output from a monopoly.
• C)The total industry output is equal to TC.
• D)The total industry output is the sum of Q_F and Q₀.

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Definitions:

Revising Depreciation Estimates

Adjusting the period or method used for depreciating a fixed asset due to changes in its expected useful life or salvage value.

Past Periods

Previous time frames or accounting periods, which have already concluded and for which financial statements are typically finalized.

Accelerated Depreciation Method

A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use, followed by a gradually declining amount of depreciation.

Units-Of-Output

A depreciation method that allocates the cost of an asset based on its usage or output during the period.