Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105 - P. Their total costs are given by TCHere = 5QHere + %3D 0.5Q²Here and TCThere = 5QThere + 0.5Q²There- If they cannot successfully %3D collude and instead produce where the market price equals marginal cost, each fırm's profits will be:

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter10: The Firm And The Industry Under Perfect Competition
Section: Chapter Questions
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Two local ready-mix cement manufacturers, Here and There, have combined
demand given by Q = 105 – P. Their total costs are given by TCHere = 5QHere +
0.5Q2Here and TCThere = 5QThere + 0.5Q²There- If they cannot successfully
collude and instead produce where the market price equals marginal cost, each
firm's profits will be:
Transcribed Image Text:Two local ready-mix cement manufacturers, Here and There, have combined demand given by Q = 105 – P. Their total costs are given by TCHere = 5QHere + 0.5Q2Here and TCThere = 5QThere + 0.5Q²There- If they cannot successfully collude and instead produce where the market price equals marginal cost, each firm's profits will be:
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