6. Each member of OPEC can increase its income by selling more oil than its output quota because (A) By selling more at OPEC's cartel price, a member will automatically earn more income. (B) The demand for oil is inelastic, total revenue increases. (C) The demand for oil is perfectly elastic. (D) Each member's demand is more elastic than the total demand for oil.

1. Figure 1 demonstrates that (A) In the short run, the monopolistic competitor produces an output \( Q_{b} \) but in the long run after it adjusts its capacity, it will produce the allocatively efficient output, \( Q_{a} \). (B) It is not possible for a monopolistic competitor to produce the productively efficient output level, \( Q_{a} \), because of product differentiation. (C) It is possible for a monopolistic competitor to produce the productively efficient output level, \( Q_{a} \), if it is willing to lower its price from \( P_{b} \) to \( P_{a} \). (D) In the long run, the monopolistic competitor produces the minimum-cost output level, \( Q_{a} \), but in the short run its output of \( Q_{b} \) is not cost minimizing. Figure 2 In 2025, New Taipei City's Franchise and Concession Review Committee granted permission to firm A to enter the market for cable TV, ending the monopolies of firms B and C. Figure 2 shows the cable television market in New Taipei City.

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