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 market price is
A. 45
B. 55
C. 60
D. 70
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Accounting Information System
Authors: James A. Hall
7th Edition
978-1439078570, 1439078572
