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Suppose you and a rival are the only producers of economic policy research. The market demand for economic policy research is Qd=60P. You each have
Suppose you and a rival are the only producers of economic policy research. The market demand for economic policy research is Qd=60P. You each have total costs of economic policy research of TC=20Q. Over lunch, you both decide to collude in the production of economic research. What is the total amount of policy analyses produced in the market? What is each of your profit maximizing amount of policy analyses? What price do you both charge for your research analysis? What profit do each of you make? What is the total profit available in the market when you collude
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