The Figure Given Below Represents Two Monopolists James and Jerry

Multiple Choice

The figure given below represents two monopolists James and Jerry.James produces Good A using the input Good B which is produced by Jerry and has no other variable costs.James is the only consumer of Good B, and the marginal cost incurred by Jerry to produce Good B is zero.DA and DB represent the demand curves for Good A and Good B respectively.MRA and MRB represent the marginal revenue received from Good A and Good B respectively.It takes one unit of A to produce a unit of B.


-Refer to Figure.What would be Jerry's profit maximizing price-output combination if the two monopolists do not cooperate?

A) 4 units at $9 each
B) 4 units at $3 each
C) 4 units at $6 each
D) 8 units at $6 each