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Suppose there are two firms in the market, Firm A and Firm B. The total market demand is given by P=40-2.5Q, MR=40-5Q, and MC=ATC=$10. What
Suppose there are two firms in the market, Firm A and Firm B. The total market demand is given by P=40-2.5Q, MR=40-5Q, and MC=ATC=$10. What is the profit maximizing price for a cartel?
a. $35
b. $25
c. $30
d. $20
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