Use the Following Figure to Answer the Question : Figure

Multiple Choice

Use the following figure to answer the question : Figure 13-2 : shows the market demand curve [DD'],the supply curve of the fringe firms [S_F],the cartel's marginal cost curve [MC₀],and the cartel's marginal revenue curve [MR₀].Assume that the cartel behaves like a dominant firm.
-Refer to Figure 13-2.Which of the following statements is true?

A) The residual demand curve is less elastic than the market demand curve.
B) The difference between Q_F and Q₀ represent the inefficiency in output from a monopoly.
C) The total industry output is equal to TC.
D) The total industry output is the sum of Q_F and Q₀.