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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