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1) 1200 2) 4800 3) 2400 4) 3600 Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and let

1) 1200

2) 4800

3) 2400

4) 3600

Suppose that there are two firms producing a homogenous product and competing in Cournot fashion and let the market demand be given by Q = 240- Assume for simplicity that each firm operates with zero total cost. Suppose that two firms collude. How much more profit each firm can obtain relative to Cournot competition?

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