The Organization of Petroleum Exporting Countries (OPEC) is an international cartel. If the cartel were to hire a consulting firm to monitor the production rates of member countries, the economic reason for this monitoring is to:
A. Make sure that each member country is producing at an output level at which price equals marginal cost
B. Make sure all the member countries produce at least their quotas so that there will be no oil shortage
C. Detect those member countries which are depressing prices by producing more than their assigned quotas
D. Make sure that the marginal revenue for the last barrel of oil sold by each member country is less than its price
C. Detect those member countries which are depressing prices by producing more than their assigned quotas
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If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss solely due to the tax is
A) $88. B) $152. C) $361. D) $441.
Which joint profit is earned when the two firms charge different prices from each other?
a. $18,000
b. $17,600
c. $17,400
d. $12,000