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Pig's Snout and Boar's Breath are the only two suppliers of truffles in Sherwood Forest. Pig's Snout supplies output by its own foraging activities. Its
Pig's Snout and Boar's Breath are the only two suppliers of truffles in Sherwood Forest. Pig's Snout supplies output by its own foraging activities. Its total cost of supplying q1 pounds of truffles is C1 (q1 ) = qi. Boar's Breath supplies output by importing truffles from abroad at a constant price. Its total cost of supplying 92 pounds of truffles is C2 (92) = 20q2. Consumers view the truffles from either supplier as identical and the inverse market demand curve for truffles is P = 120 - (q1 + q2). If Pig's Snout and Boar's Breath successfully operate as a cartel that maximizes combined firm profits, (how) will the quantity of daily output supplied by each firm change in response to an outward shift of the market demand curve for truffles? O Pig's Snout will supply the same amount of output but Boar's Breath will supply more output. O Pig's Snout will supply more output but Boar's Breath will supply the same amount of output. O Pig's Snout will supply the same amount of output and Boar's Breath will supply the same amount of output. O Pig's Snout will supply more output and Boar's Breath will supply more output
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