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Needs solution pleasw The market for disinfectant is dominated by 2 firms, Lysol and Clorox. The marginal cost (MC) for providing disinfectant is $1 (average

Needs solution pleasw

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The market for disinfectant is dominated by 2 firms, Lysol and Clorox. The marginal cost (MC) for providing disinfectant is $1 (average cost is also $1), and the consumer form their demand for disinfectant via the following inverse demand equation P = 5 - Q:. The corresponding marginal revenue curve is: P = 5 - 2Q a. If Lysol and Clorox decide to collude, what quantities will be sold in the market and what price will consumers pay for this quantity? (5 points) i. Quantity: ii. Price: b. How much profit each will Lysol and Clorox receive if they decide to split production evenly? c. Suppose that Lysol decides to cheat and increase production by one unit. What will be the new market price, and how much revenue and profit will Lysol and Clorox now make? i. New market price: ii.Lysol revenue: iii. Clorox revenue: iv. Lysol profit: v. Clorox profit

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