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Let Q * be the equilibrium market quantity of output from the cartelization model. (i) Carefully derive and interpret the comparative-static derivative Q * /N,

Let Q * be the equilibrium market quantity of output from the cartelization model.

(i) Carefully derive and interpret the comparative-static derivative Q * /N, where N is the number of cartel members (or, plants).

(ii) Compare Q * /N to p * /N, where p* is the market price. Do the signs of these two comparative-static derivatives (positive, negative or zero) make economic sense?

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