The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output. If the world market for good A were perfectly competitive, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

Question

The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output.  If the world market for good A were perfectly competitive, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

Quizplus · Accepted Answer

The Answer of The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output.  If the world market for good A were perfectly competitive, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

The Figure Given Below Shows a Situation Where the Producers