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. Assume that Country A cheats on the cartel agreement by producing 200 more barrels than the other two countries. What is the new market price when Country A cheats on the agreement?

A) 60
B) 50
C) 20
D) 40