Firms a and B Operate as a Centralized Cartel $$M C _ { A } = 2000 + 25 Q _ { \mathrm { A } } \quad M C _ { \mathrm { B } } = 2000 + 6.25 Q _ { \mathrm { B } }$$

Essay

Firms A and B operate as a centralized cartel. Their marginal cost functions are defined below:
$$M C _ { A } = 2000 + 25 Q _ { \mathrm { A } } \quad M C _ { \mathrm { B } } = 2000 + 6.25 Q _ { \mathrm { B } }$$ The firms face the following market demand curve:
$$Q = 1000 - 0.05 P$$ Determine the market price that the firms should charge and the quantity of output that should be produced by each firm.