question archive Two firms in a particular industry face a market demand curve given by the equation P = 110 - 0
Two firms in a particular industry face a market demand curve given by the equation P = 110 - 0
Subject:EconomicsPrice:5.87 Bought7
Two firms in a particular industry face a market demand curve given by the equation P = 110 - 0.25Q. The marginal cost is $40 per unit and the marginal revenue is MR = 110 - 0.5Q.
a)insert the corresponding marginal revenue curve and the MC curve. Note: When calculating your points, please round the numbers to the nearest whole number.
b) If these firms got together to form a cartel, what output would they produce, and what price would they charge? Output of Cartel = 0
Selling Price = $0
c) If the producers stay within the confines of the agreement, what will happen to both the producers' profit? The other producer's profit will:
Select one
Increase
Decrease
No change
