Microeconomics II. Oligopoly and Game Theory

1. [2.5 puntos} In a village there are two farmers, they are the only milk producers, they simultaneously decide how much to produce. The local demand is given by [1qu = 2000 2L1. Both farmers have the same cost function, Ch]: 3000 + 560:]. Calculate the following: 2. A. The Coumot equilibrium, as well as the benets of both producers. 3. b. Compare the total surplus of the Coumot equilibrium with the welfare of the scenario in which the two farmers decide to form a cartel. Explain the setting