A Cournot Oligopoly(duopoly) exists where the market demand function facing each of the two firms is

P = 4 -(Q₁+ Q₂) , whereQ = (Q₁+ Q₂) and the MC facing each firm is zero.

If the two firms form a cartel, what is the market quantity (Q) and market price (P) that will prevail?

Question 24 options:

3, 1

1, 3

4/3, 4/3

2, 2