Question
Suppose Alpha Incorporated is one firm in a cartel. The cartel production quota for Alpha is 10 units. The marginal cost for Alpha is given
Suppose Alpha Incorporated is one firm in a cartel. The cartel production quota for Alpha is 10 units.
The marginal cost for Alpha is given by the function: MC=2+0.5Q. The price with the cartel is $14.
19. Determine the producer surplus Alpha would earn if it produced the quota____$95
20. Determine the quantity Alpha will produce if he cheats on the cartel (i.e. the quantity that
maximizes his profit as a price taker). ____________________ 24 units
21. Determine the producer surplus Alpha would earn if it cheated on the cartel.___________ $144
answers are given, please show work without graphs
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