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Firm A and B make up a cartel that monopolizes the market for a scarce natural resource. The firms' marginal costs are MCA= 6 +
Firm A and B make up a cartel that monopolizes the market for a scarce natural resource. The firms' marginal costs are MCA= 6 + 2QA and MCB = 18 + QB, respectively. The firms seek to maximize the cartel's total profit. If the firm wants to produce 8 units at the lowest cost, Group of answer choices Firm A will produce the units Firm A and Firm B will split production Firm B will produce the units Firm A will produce 6 units and Firm B will produce 2 units
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