Use the following to answer questions: Table: Three-Country Oil Production
-(Table: Three-Country Oil Production) Refer to the table. Suppose that three countries are engaged in oil production. For simplicity, assume zero costs so that revenue equals profit. If the countries create a cartel and agree to mimic monopoly-like behavior, what level of output would each firm produce?
A) 1,200
B) 400
C) 200
D) 700
Correct Answer:
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