The diagram illustrates a firm’s marginal and average cost curves. The firm joins a collusive agreement ... A production quota, Oq, is then assigned to the firm. To maximise the profits, the firm chooses to cheat. What is the resulting short-run increase in profits?
- APGKL
- BPHJL
- CPHJL minus PGNM
- DPGKL minus LKNM