Suppose that Firm A and Firm B are two of the largest producers of a special pool-cleaning robot. Suppose that the marginal cost of making such a robot is constant at $1,500 per unit and there is no start-up cost. The demand for the robot is described by the following table.
|
Price
|
Quantity
|
TR (Millions)
|
MR
|
MC (Millions)
|
TC
|
Profit
|
|
$8,500
|
5,500
|
46.75
|
0
|
0
|
|
|
|
7,500
|
6,500
|
48.75
|
2 million
|
1.5
|
|
|
|
6,500
|
7,500
|
48.75
|
0
|
1.5
|
|
|
|
5,500
|
8,500
|
46.75
|
2 million
|
1.5
|
|
|
|
4,500
|
9,500
|
42.75
|
4 million
|
1.5
|
|
|
|
3,500
|
10,500
|
36.75
|
6 million
|
1.5
|
|
|
|
2,500
|
11,500
|
28.75
|
6 million
|
1.5
|
|
|
|
1,500
|
12,500
|
18.75
|
10 million
|
1.5
|
|
|