Figure 91 Illustrates the Market Conditions Facing SKF and Timken, Initially

Multiple Choice

Figure 9.1 illustrates the market conditions facing SKF and Timken, initially operating as competitors in the domestic ball bearing market. Each firm realizes constant long-run costs, MC₀=AC₀.
Figure 9.1. International Joint Venture


-Consider Figure 9.1.With SKF and Timken behaving as competitors, the equilibrium price and output respectively equal

A) $4 and 2 units.
B) $4 and 4 units.
C) $6 and 2 units.
D) $6 and 4 units.