The figure below shows a situation where the producers of Good X are forming an international cartel. Here, MR = Marginal Revenue, and MC = Marginal Cost.
If the producers of Good X form a cartel and set a monopoly price for the output, the price per unit would be ________ and the cartel profits (before subtracting any fixed costs) would be
A. $1,000; $40 billion.
B. $500; $10 billion.
C. $600; $90 billion.
D. $1,000; $60 billion.
Answer: D
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