The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S_F],the cartel's marginal cost curve [MC₀],and the cartel's marginal revenue curve [MR₀].Assume that the cartel behaves like a dominant firm.
-Refer to Figure 13-2.If the market had been perfectly competitive,the equilibrium price and output would be _____ respectively.

Question

The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S_F],the cartel's marginal cost curve [MC₀],and the cartel's marginal revenue curve [MR₀].Assume that the cartel behaves like a dominant firm.

The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S<sub>F</sub>],the cartel's marginal cost curve [MC<sub>0</sub>],and the cartel's marginal revenue curve [MR<sub>0</sub>].Assume that the cartel behaves like a dominant firm. -Refer to Figure 13-2.If the market had been perfectly competitive,the equilibrium price and output would be _____ respectively. A) P<sub>C</sub> and Q<sub>T</sub> B) P and Q<sub>0</sub> C) P<sub>C</sub> and Q<sub>F</sub> D) P and Q<sub>F</sub>

-Refer to Figure 13-2.If the market had been perfectly competitive,the equilibrium price and output would be _____ respectively.

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price and output are determined by the intersection of the supply and demand curves. In Figure 13-2, this intersection occurs at point C, which corresponds to price P_C and output Q_T.

The Following Figure Shows the Market Demand Curve [DD'],the Supply