Use the Following Figure to Answer the Question : Figure

question 24

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.On the AD' portion of the demand curve _____.

• A)the cartel and fringe firms will produce equal quantities of output
• B)only the fringe firms will produce output
• C)the demand curve is more elastic
• D)only the cartel acting as a dominant firm will produce output

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Definitions:

Fahrenheit

A temperature scale where the freezing point of water is 32 degrees and the boiling point is 212 degrees at standard atmospheric pressure.

Classification

The act of organizing or sorting things into different categories based on shared qualities or characteristics.

Fevers

An increase in body temperature above the normal range, often a sign of infection or illness, reflecting the body's immune response.

Fahrenheit

A temperature scale on which water freezes at 32 degrees and boils at 212 degrees under standard conditions.