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Two Firms (A and B)have Marginal Costs MCA and MCB,marginal

Question 1

Multiple Choice

Two firms (A and B) have marginal costs MCA and MCB,marginal revenues MRA and MRB,and market marginal revenue MR.If both firms produce as a cartel,they should produce so that:


A) MCA = MCB = MR.
B) MCA = MRA and MCB = MCB.
C) MCA + MCB = MR.
D) MCA + MCB = MRA + MRB, not necessarily MCA = MRA.
E) MCA = MCB = MRA + MRB.

Correct Answer:

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