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Exercise 1: Cartels (Monopoly with Multiple plants) Three firms act as a cartel. That is, they jointly maximize industry profits by acting like a single

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Exercise 1: Cartels (Monopoly with Multiple plants) Three firms act as a cartel. That is, they jointly maximize industry profits by acting like a single monopoly with multiple plants. The cartel sets one per-unit price for all consumers. The three cartel member firms have the following marginal cost functions. MC1(Q1)=4Q1MC2(Q2)=2+2Q2MC3(Q3)=6+Q3 The inverse market demand is P(Q)={6471Q0ifQ

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