Multiple Choice
If an industry consisting of two firms produces a total of 12 units, the market price is $10. If 13 units are produced, the price falls to $9. Suppose the two firms form a cartel and agree to produce 6 units each. If one firm cheats and produces 7 units, the cheating firm's revenue rises by _____ and the noncheating firm's revenue falls by _____.
A) $3; $6
B) $3; $12
C) $6; $6
D) $6; $12
Correct Answer:
Verified
Correct Answer:
Verified
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