In the short run, if a firm does not produce any output then it does not incur any costs

Assume a cartel that consists of two firms has determined its profit-maximizing level of output and must now decide how to allocate total output between the two firms

Assuming firm A's marginal costs are less than firm B's marginal costs, firm A should produce a smaller share of total output than firm B. Indicate whether the statement is true or false

If antitrust legislation is successful, then the monopolistic firm will

A) decrease output and charge a lower price than before. B) increase output and charge a higher price than before. C) increase output and charge a lower price than before. D) decrease output and charge a higher price than before.