8. The table below shows the demand schedule for 350mL cans of cola which are manufactured by twodifferent firms.QuantityPrice$16$14$12$10123$8$64$4$2$0678Suppose the two firms collude and form a cartel. What price will the cartel charge in this market if themarginal cost of production is $3/can? (They can only pick one of the options in the table.)

Answer: Given that: A cartel when colludes,produces at the point MR=MC in order to maximize…

Answered: Quantity Price $16 $14 1 $12 $10 3 $8…

Business

Economics

Quantity Price $16 $14 1 $12 $10 3 $8 $6 4 5 $4 $2 $0 7 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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