The figure given below represents the output choices of each of the two oligopolists, given the choices of its competitor.QA and QB are the quantities of output produced by Producer A and Producer B.The marginal cost of production is zero for both producers.

-Refer to.If Producer A and Producer B act as a price-takers what will be the total output produced in the market?
A)12 units
B)6 units
C)4 units
D)2 units

Question

The figure given below represents the output choices of each of the two oligopolists, given the choices of its competitor.QA and QB are the quantities of output produced by Producer A and Producer B.The marginal cost of production is zero for both producers.

-Refer to.If Producer A and Producer B act as a price-takers what will be the total output produced in the market?

-Refer to.If Producer A and Producer B act as a price-takers what will be the total output produced in the market?
A)12 units 
B)6 units 
C)4 units 
D)2 units

Quizplus · Accepted Answer

Producer A and Producer B, acting as price-takers, will produce at the quantity where price equals marginal cost. The total output is the sum of outputs from both producers, which equals 12 units.

The Figure Given Below Represents the Output Choices of Each