A Cournot Oligopoly (duopoly) exists where the market demand function facing each of the two firms is P = 4 - (Q1 + Q2) , where Q = (Q1 + Q2) and the MC facing each firm is zero. If the two firms form a cartel, what is the market quantity (Q) and market price (P) that will prevail? 4/3, 4/3 3,1 1,3 2,2

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A Cournot Oligopoly (duopoly) exists where the market demand function facing each of the two firms is

P = 4 - (Q1 + Q2) , where Q = (Q1 + Q2) and the MC facing each firm is zero.

If the two firms form a cartel, what is the market quantity (Q) and market price (P) that will prevail?

  1. 4/3, 4/3
  2. 3,1
  3. 1,3
  4. 2,2
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