Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Four chewing gum producing firms form a cartel. The firms have identical cost structures. If the cartel produces the profit-maximizing output level, each firm should produce
A. 3,000 packs of chewing gum.
B. 4,000 packs of chewing gum.
C. 12,000 packs of chewing gum.
D. indeterminate output levels from this information.
Answer: A
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