Question
Consider a market with the market demand D: P=80-Q, which is served by four Cournot oligopolistic producers (firms) with the constant marginal cost MC= $30
Consider a market with the market demand D: P=80-Q, which is served by four Cournot oligopolistic producers (firms) with the constant marginal cost MC= $30 and no fixed cost.
When these four firms collude to form a cartel, the profit of each firn is
A 126.75
B 145.50
C 156.25
D 186.25
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
The Chinese Economy Transitions And Growth
Authors: Barry Naughton
1st Edition
0262640643, 9780262640640
