There are only two firms in the widget industry. The total demand for widgets is 0 =

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There are only two firms in the widget industry. The total demand for widgets is 0 = 30 - 2P. The two firms have identical cost functions, TC = 3 + 10Q. The two firms agree to collude and act as though the industry were a monopoly. At what price and quantity will this cartel maximize its profit?
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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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