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Suppose that the firms cooperate to act as a monopoly I joint output of 60 shared equally at 30 units each I price of $90
Suppose that the firms cooperate to act as a monopoly I joint output of 60 shared equally at 30 units each I price of $90 I profit to each firm is $1,800 But there is an incentive to cheat. firm 1's output of 30 is not a best response to firm 2's output of 30
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Principles of Auditing and Other Assurance Services
Authors: Ray Whittington, Kurt Pany
19th edition
978-0077804770, 78025613, 77804775, 978-0078025617
