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Suppose Grandis and Immanis are the only two companies that sell the product whose market demand curve is shown in the accompanying figure. For both
Suppose Grandis and Immanis are the only two companies that sell the product whose market demand curve is shown in the accompanying figure. For both companies, both average total cost and marginal cost are constant and equal to $2 (ATC = MC = $2). The graph plots quantity in units per day versus price in dollars per unit. A diagonal line starts from the top left and ends at the bottom right.The graph plots quantity in units per day versus price in dollars per unit. A diagonal line marked D starts from the top left of the first quadrant at (0, 8) and comes diagonally down and to the right and ends at the bottom right of the first quadrant at (80, 0) passing through the following coordinates: (10, 7), (30, 5) and (50, 3). Suppose Grandis and Immanis agree to collude by both charging the price a monopolist would charge and each producing half of the monopolist's profit-maximizing level of output. If they both abide by this agreement, then each will earn a profit of _____ per day. Multiple Choice $90 $75 $45 $150
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