The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4 In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-In Figure 15.4,the price and quantity of the good if produced by India would be _____ and _____ respectively.

Question

The figure given below shows the demand curve in the U.S.and the cost curves in U.S.and India. Figure: 15.4  In the figure:
MC: Marginal cost curve
ATC: Average total cost curve
D: Demand curve in the U.S.
MR: Marginal revenue curve in the U.S.
-In Figure 15.4,the price and quantity of the good if produced by India would be _____ and _____ respectively.

Quizplus · Accepted Answer

The correct answer is A because India's production possibility frontier is represented by the line connecting P1 and P5. If India produces the good, the price will be P3 and the quantity will be Q3.

The Figure Given Below Shows the Demand Curve in the U.S.and