Suppose four firms in the airline industry have gotten together and formed a cartel.Which of the following is true?
A) The firms will set a price that is equal to minimum average total cost.
B) The firms will produce where the marginal cost curve intersects the average total cost curve.
C) The firms will produce where marginal cost is equal to marginal revenue.
D) The firms will set a price equal to marginal revenue.
Correct Answer:
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