A decentralized cartel consisting of three firms has an industry demand of P = 180-Q. The firms have identical cost curves given by TC = 20q: + q?. AC Qty Qty Typical firm Industry 1) What is the firm's profit maximizing output? 2) What is the firm's profit maximizing price? 3) What is the firm's profit? 4) If the cartel broke down and the firms competed, what would the firm's price be?
A decentralized cartel consisting of three firms has an industry demand of P = 180-Q. The firms have identical cost curves given by TC = 20q: + q?. AC Qty Qty Typical firm Industry 1) What is the firm's profit maximizing output? 2) What is the firm's profit maximizing price? 3) What is the firm's profit? 4) If the cartel broke down and the firms competed, what would the firm's price be?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter24: Monopolistic Competition, Oligopoly, And Game Theory
Section: Chapter Questions
Problem 4WNG
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8) can i get the answer to subpart 4 only thanks
![A decentralized cartel consisting of three firms has an industry demand of P = 180-Q.
The firms have identical cost curves given by TC = 20q: + q?.
AC
Qty
Qty
Туpical firm
Industry
1) What is the firm's profit maximizing output?
2) What is the firm's profit maximizing price?
3) What is the firm's profit?
4) If the cartel broke down and the firms competed, what would the firm's price be?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F57a3d338-de20-4ea6-aab9-3f01357cec02%2Feb1a870a-a363-4788-85ca-e13f07d7d6c1%2Fta5ybuc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A decentralized cartel consisting of three firms has an industry demand of P = 180-Q.
The firms have identical cost curves given by TC = 20q: + q?.
AC
Qty
Qty
Туpical firm
Industry
1) What is the firm's profit maximizing output?
2) What is the firm's profit maximizing price?
3) What is the firm's profit?
4) If the cartel broke down and the firms competed, what would the firm's price be?
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