QUESTION 22 Instructions: Round up your answers to no decimals. Two firms are competing in the makret of hosptial equipment. The market demand for this market is P = 230-2(Q1 + Q2) and costs are C(Q1) = 22Q1 and C2(Q2) = 30Q2. Later, the firms agreed to collude (in this market it is legan to collude) by sharing the market demand using the pre-collusion market shares and the average costs to calculate collusion costs. You are the manager of Firm 1, and are happy to hear about a possible collusion. But first you complete the following analysis: You collude but firm 2 supplies Q of duopoly.

questions:

Q1 for duopoly, collusion and firm1 trust/firm 2 supplies q-duopoly

Q2 for duopoly, collusion and firm1 trust/firm 2 supplies q-duopoly

P for duopoly, collusion and firm1 trust/firm 2 supplies q-duopoly

profits firm 1 for duopoly, collusion and firm1 trust/firm 2 supplies q-duopoly

profits firm two: duopoloy=2048, collusion=? and firm1 trusts/firm2 supplies q-duopoly= 2624