Question
There are three firms in an oligopoly industry. The market demand function for the industry is P=210-3Q. The three firms form a cartel and arrange
There are three firms in an oligopoly industry. The market demand function for the industry is P=210-3Q. The three firms form a cartel and arrange to divide total industry profits equally among them. The TC function for the cartel is given by TC=Q2/2 + 150. The MC function (which is the derivative of the TC function with respect to quantity) of the cartel is given by MC=Q.
- How much output will the cartel produce to maximize profit?
- What is the price charged by the cartel?
- How much profit will each firm make?
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Essentials Of Business Law And The Legal Environment
Authors: Richard A Mann, Barry S Roberts
10th Edition
0324593562, 9780324593563
