he table above presents the demand schedule and profits for soft drinks. Suppose the market for soft drinks is a duopoly and the two firms in the market are Coca Cola and Pepsi. Assume Coca Cola and Pepsi make exactly the same soft drinks but with different names: Coke and Pepsi. Assume a constant marginal cost of $200 and no fixed costs. If Coca Cola and Pepsi collude, how many Cokes would Coca Cola produce? [11:52] 100     25

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The table above presents the demand schedule and profits for soft drinks. Suppose the market for soft drinks is a duopoly and the two firms in the market are Coca Cola and Pepsi. Assume Coca Cola and Pepsi make exactly the same soft drinks but with different names: Coke and Pepsi. Assume a constant marginal cost of $200 and no fixed costs. If Coca Cola and Pepsi collude, how many Cokes would Coca Cola produce?

[11:52]

100

 

 

25

 

 

150

 

 

75

Quantity
Price
Profit
$1400
$ 0
25
1300
275
50
1200
500
75
1100
675
100
1000
800
125
900
875
150
800
900
175
700
875
200
600
800
225
500
675
250
400
500
275
300
275
300
200
Transcribed Image Text:Quantity Price Profit $1400 $ 0 25 1300 275 50 1200 500 75 1100 675 100 1000 800 125 900 875 150 800 900 175 700 875 200 600 800 225 500 675 250 400 500 275 300 275 300 200
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