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A two-firm coal cartel that produces at a constant marginal cost of 19 faces a market inverse demand curve of P = 110 - 0.51
A two-firm coal cartel that produces at a constant marginal cost of 19 faces a market inverse demand curve ofP= 110 - 0.51Q. Initially, both firms agree to act like a monopolist, each producing 44.61 tonnes of coal. If one of the firms cheats on the agreement (assuming the other firm is compliant and continues to produce at 44.61tonnes), to within 2 decimal places (e.g. 1.92) the cheating firm will produce how manytonnes of coal.
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