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.On the AD' portion of the demand curve _____.

A) the cartel and fringe firms will produce equal quantities of output
B) only the fringe firms will produce output
C) the demand curve is more elastic
D) only the cartel acting as a dominant firm will produce output