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Two Firms Have Formed a Centralized Cartel in Order to Maximize

Question 33

Multiple Choice

Two firms have formed a centralized cartel in order to maximize profit on the market. Their marginal cost curves are: MCA = 2QA and MCB = 3QB. If the marginal revenue curve of the market is MR = 100-0.8Q, what price should the cartel charge?


A) P=40
B) P=60
C) P=80
D) P=90

Correct Answer:

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