What is the cartels profit maximising output and the profit


Question: A market has an inverse demand function defined by

p = 200 - 0.5X

Two firms exist in this market that have identical total costs. For firm 1 these are defined by

TC1 = X1 + 0.5X1

with an equivalent definition for firm 2.

(a) If these two firms form a cartel, define the cartel's, marginal cost function.

(b) What is the cartel's profit maximising output and the profit earned?

(c) How much will firm 1 sell if it cheats on the cartel?

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Engineering Mathematics: What is the cartels profit maximising output and the profit
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