Reference: Ref 15-3 (Table: Three-Country Oil Production) Refer to the Table

Multiple Choice

Reference: Ref 15-3 (Table: Three-Country Oil Production) Refer to the table. Suppose that three countries are engaged in oil production. For simplicity, assume zero costs so that revenue equals profit. If the countries create a cartel and agree to mimic monopoly- like behavior, what level of output would each firm produce?

A) 1,200
B) 400
C) 200
D) 700