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Business, 26.12.2019 22:31 Brianna1227

Suppose that a price-taker firm has a marginal cost function given by: mc= 20+0.5q. the firm could join a cartel in its industry and agree to a quota of 5 units. the collusion drives the price of the good from $25.45 to $55.00. suppose that if the firm cheats on the cartel, it has no effect on the price. calculate the producer surplus of this firm when they cheat on the cartel.

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Suppose that a price-taker firm has a marginal cost function given by: mc= 20+0.5q. the firm could...
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