20.5 The world's entire supply of kryptonite is controlled by 20 people, with each having 10,000 grams of this potent mineral. The world demand for kryptonite is given by Q= 10,000- l,000P, where Pis the price per gram.

a. If all owners could conspire to rig the price of kryptonite, what price would they set, and how much of their supply would they sell?

b. Why is the price computed in part

(a) an unstable equilibrium?

c. Does a price for kryptonite exist that would be a stable equilibrium in the sense that no firm could gain by altering its output from that required to maintain this market price?