Question

Nuestion 23 Not yet answered Points out of 1.00 If a cartel firm is producing a quantity at which the marginal revenue is $2 and the marginal cost is $2, the firm P Flag question Select one: A. is producing the agreed upon quantity B. has erected a barrier to entry C. is producing less than the agreed upon quantity D. has acted in self-interest Question 24 If a monopolist is producing the profit-maximizing output level and at this output level, the marginal cost is $4 and the profit maximizing price is $9, what is the markup? Not yet answered Points out of 1.00 P Flag question Select one: A.0.22 O B.2 C.5 D.2.25

Answer 1

a) At his point the Cartel is maximizing its profit by matching its MR and MC just like a monopoly would do, they are producing at an agreed upon quantity. the answer is "A".

b) The markup of the firm in the market will be 2.25 and the answer is "D".