Essay
Firms A and B operate as a centralized cartel. Their marginal cost functions are defined below:
MCA = 2000 + 25QA MCB = 2000 + 6.25QB
The firms face the following market demand curve:
Q = 1000 - 0.05P
Determine the market price that the firms should charge and the quantity of output that should be produced by each firm.
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The horizontal sum of the two marginal c...View Answer
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