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5. Now consider what happens when these rms enter into a cartel agreement to split the market 50/50. What price and quantity should they select

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5. Now consider what happens when these rms enter into a cartel agreement to split the market 50/50. What price and quantity should they select to maximize the returns to cartelization? What is the welfare cost, relative to the cournot outcome, from this new market structure? What is the change in consumer surplus? 6. Describe how a game is structured in which this cartel agreement is enforced through repeated interaction. 7. Assume that rms play trigger strategies. What are these strategies in this instance? What is the stage game when the two rms cooperate? What is the stage game when they defect? What are prots for each rm

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