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If the Cartel Described by the Accompanying Diagram Is Broken

Question 14

Multiple Choice

If the cartel described by the accompanying diagram is broken up and forced into a perfectly competitive market situation,the optimal output and price will be: If the cartel described by the accompanying diagram is broken up and forced into a perfectly competitive market situation,the optimal output and price will be:   A)  Q = 200 and P = $80. B)  Q = 260 and P = $60. C)  Q = 250 and P = $80. D)  Q = 250 and P = $75. E)  Q = 500 and P = $60.


A) Q = 200 and P = $80.
B) Q = 260 and P = $60.
C) Q = 250 and P = $80.
D) Q = 250 and P = $75.
E) Q = 500 and P = $60.

Correct Answer:

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