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7 b. What beer price will maximize the collective prots of the cartel members? c. Suppose a bartender comes up with the alternative idea of
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b. What beer price will maximize the collective prots of the cartel members? c. Suppose a bartender comes up with the alternative idea of selling patrons a nightly "drinking license" that would have to be paid upon entering a bar. How much could each of the bartenders charge for such a license if they left the per glass beer price at the previous, collusive level? How much prot would the cartel make? d. If instead bartenders set the license fee and the beer price together so as to maximize prots, how much will they charge for the license and for a glass of beer, and how much prot will the cartel make? e. What would be a real-world example of this pricing practiceStep by Step Solution
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