suppose Boeing is the only firm that produces aeroplanes in the world. The marginal cost of producing an aeroplace of Boeing is $50,000.

The quantity demanded for Boeing's aeroplane is provided as bleow.

Table1 -Demand schedule

Price Quantity

(thousands $)

40,000 10

30,000 30

20,000 60

10,000 100

1) calculate Boeing's total revenue and marginal revenue.

How many aeroplances will Boeing Produce?

2) There are only two firms producing aeroplanes in the world. Boeing and Airbus.

Suppose two companies produce the same type of aeroplane. If two firms successfully collude, what is the quantity that they both agree to produce assuming they split the share euqally?