Refer to the graph of market demand and marginal revenue. Two firms have formed a centralized cartel in order to maximize profit on the market. Their marginal cost curves are given below: 100 Price 90 80 70 60 50 40 30 20 10 0 ก 2 -5 1 2 3 4 5 6 7 8 9 10 11 Demand Quantity Show Transcribed Text MC₁ = 10Q1 and MC₂ = 30 Q2 In order to maximize profit, the firms should produce Q1 = 3, Q2 = 1, and charge P= 60. How do I solve this?

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 3SCQ: Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal...
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Refer to the graph of market demand and
marginal revenue. Two firms have formed
a centralized cartel in order to maximize
profit on the market. Their marginal cost
curves are given below:
100
Price
90
80
70
60
50
40
30
20
10
0
ก
2
-5
1 2 3 4 5 6 7 8 9 10 11
Demand
Quantity
Show Transcribed Text
MC₁ = 10Q1 and MC₂ = 30 Q2
In order to maximize profit, the firms
should produce Q1 = 3, Q2 = 1, and charge
P= 60. How do I solve this?
Transcribed Image Text:Refer to the graph of market demand and marginal revenue. Two firms have formed a centralized cartel in order to maximize profit on the market. Their marginal cost curves are given below: 100 Price 90 80 70 60 50 40 30 20 10 0 ก 2 -5 1 2 3 4 5 6 7 8 9 10 11 Demand Quantity Show Transcribed Text MC₁ = 10Q1 and MC₂ = 30 Q2 In order to maximize profit, the firms should produce Q1 = 3, Q2 = 1, and charge P= 60. How do I solve this?
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