The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S F ],the cartel's marginal cost curve [MC 0 ],and the cartel's marginal revenue curve [MR 0 ].Assume that the cartel behaves like a dominant firm. -Refer to Figure 13-2.Which of the following statements is true? A)The residual demand curve is less elastic than the market demand curve. B)The difference between Q_F and Q₀represent the inefficiency in output from a monopoly. C)The total industry output is equal to TC. D)The total industry output is the sum of Q_F and Q₀.

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The Answer of The following figure shows the market demand curve [DD'],the supply curve of the fringe firms [S F ],the cartel's marginal cost curve [MC 0 ],and the cartel's marginal revenue curve [MR 0 ].Assume that the cartel behaves like a dominant firm. -Refer to Figure 13-2.Which of the following statements is true? A)The residual demand curve is less elastic than the market demand curve. B)The difference between Q_F and Q₀represent the inefficiency in output from a monopoly. C)The total industry output is equal to TC. D)The total industry output is the sum of Q_F and Q₀.

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