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Suppose the demand for oil is P=146Q-0.20. There are two oil producers who do not cooperate. Producing oil costs $7 per barrel. What is the profit of each cartel member?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 3P

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Suppose the demand for oil is P=146Q-0.20. There are two oil producers who do not cooperate. Producing oil costs $7 per barrel. What is the profit of each cartel member?

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