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The Figure Given Below Shows a Situation Where the Producers

Question 6

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. 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. How much would the consumer surplus fall after the formation of the cartel? A) $5 billion B) $15 billion C) $20 billion D) $50 billion How much would the consumer surplus fall after the formation of the cartel?


A) $5 billion
B) $15 billion
C) $20 billion
D) $50 billion

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