The Figure Given Below Shows a Situation Where the Producers

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 producers of good X form a cartel and use monopoly pricing, the price per unit would be _____ and the industry profits (before subtracting any fixed costs) would be _____.

A) $500; $10 billion
B) $600; $90 billion
C) $1,000; $60 billion
D) $1,000; $40 billion