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Assume that the market demand for a corn fertilizer is given by P = 40Q. Currently, the industry consists of two rms, each facing a marginal cost...

Assume that the market demand for a corn fertilizer is given by P = 40−Q. Currently, the industry consists of two firms, each facing a marginal cost curve MCi = 15 + Qi, i = 1,2, and no fixed costs.

a (16). Calculate the profit-maximizing output and price if the firms form a cartel.

b (4). Calculate the optimal division of output among the cartel members

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