a. Suppose the two firms form a cartel and act as a monopolist. Calculate marginal revenue for

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a. Suppose the two firms form a cartel and act as a monopolist. Calculate marginal revenue for the cartel. What will the monopoly price and output be? Assuming the firms divided the output evenly, how much will each produce and what will each firm’s profits be?

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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