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3. There are 2 firms in an industry. Each has MC = 0. Market demand is p = 380 .5y. Suppose the firms initially decide

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3. There are 2 firms in an industry. Each has MC = 0. Market demand is p = 380 .5y. Suppose the firms initially decide to collude and split the monopoly outcome (and hence, profit). Firm 1 then decides to cheat. How much will Firm 1 produce when it cheats and what will be its profit

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