Business, 02.06.2020 18:58 barnhill4755
There are two firms in an industry. The industry demand curve is given by p = 3,600 - 4q. Each firm has one manufacturing plant and each firm i has a cost function C(q_i) = q^2_i, where q_i is the output of firm i. The two firms form a cartel and arrange to split total industry profits equally.
Required:
a) Under this cartel arrangement, they will maximize joint profits if .
Answers: 3
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There are two firms in an industry. The industry demand curve is given by p = 3,600 - 4q. Each firm...
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