3218EconomicsMedium
Suppose that the firms collude and become a cartel The best level of output for the cartel as a whole is ________ the price equals ________ and profits total ________?
A2 million barrels per day, $100, $60 million
B6 million barrels per day, $60, $60 million
C8 million barrels per day, $40, $20 million
D4 million barrels per day, $80, $160 million
Correct answer
D. 4 million barrels per day, $80, $160 million
Explanation
The correct answer is 4 million barrels per day, $80, $160 million.