The figure given below shows the demand curve in the U.S. and the cost curves in U.S. and India.Figure: 16.4
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.
-According to Figure 16.4, the price and quantity of the good if produced by the U.S. 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: 16.4
  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.
-According to Figure 16.4, the price and quantity of the good if produced by the U.S. would be _____ and _____ respectively.

Quizplus · Accepted Answer

The price and quantity of the good produced by the U.S. can be found at the intersection of the demand curve (D) and the marginal cost curve (MC) which is at point U1. At this point, the price is P₂ and the quantity is Q₂. Therefore, the correct choice is D.

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