Multiple Choice
The figure given below shows a situation where the producers of good X are forming an international cartel. Here, MR = Marginal Revenue, MC = Marginal Cost, and P = Price. The cartel use monopoly pricing for its output. 
If the world market for good A were perfectly competitive, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.
A) $600; $90.0 billion
B) $600; $22.5 billion
C) $1,000; $50.0 billion
D) $500; $10.0 billion
Correct Answer:
Verified
Correct Answer:
Verified
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