Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Six firms that produce chewing gum form a cartel. The cartel faces the market demand curve given by D. To maximize profits, the cartel should produce ________ packs of chewing gum and the price should be ________.
A. 12,000; $.40
B. 16,000; $.35
C. 12,000; $.25
D. 14,000; $.30
Answer: A
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a. True b. False Indicate whether the statement is true or false