Economics
5th Edition
ISBN: 9781319066604
Author: Paul Krugman, Robin Wells
Publisher: Worth Publishers
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Chapter 14, Problem 4P
To determine
Concept Introduction:
Cartel: In order to eliminate competition; manufacturers or suppliers, or an association creates a formal agreement to earn profits, by manipulating prices.
Marginal Revenue: It refers to an additional revenue gained by producing one additional unit of a product or service. The formula to calculate marginal revenue is:
Here,
is the change in Total Revenue. 
is the change in Quantity of that commodity.
Total Revenue: This refers to the total receipts received by the sale of the given quantity of goods or services. The formula to calculate total revenue is:
Here,
- P is the
price of a commodity - Q is the quantity of that commodity.
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