Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions:
Figure: Monopoly Profits in Duopoly
-(Figure: Monopoly Profits in Duopoly) Suppose the duopoly industry illustrated in the figure Monopoly Profits in Duopoly produces a perishable good. If the industry is perfectly competitive, the market price will likely end up being _____, and the combined economic profits of the firms will be _____.

A) P₁; given by the area of the rectangle bounded by 0P₁CQ₄
B) P₁; zero
C) P₃; given by the area of the rectangle bounded by 0P₃AQ₁
D) P₂; given by the area of the rectangle bounded by P₁P₂GB