Figure 9.1.International Joint Venture

Multiple Choice

Figure 9.1.International Joint Venture
-Consider Figure 9.1.Suppose that Sony Company and American Company jointly form a new firm,Venture Company,whose ball bearings replace the output sold by the parents in the domestic market.Assuming that Venture Company operates as a monopoly and that its costs equal MC₀=AC₀,the firm's price,output,and total profit would respectively equal:

A) $6,2 units,$4
B) $4,2 units,$2
C) $6,4 units,$4
D) $4,4 units,$2