1. Imagine that the market of tomatoes is determined by the following demand expression P=200-Q_d Where Q_d is the quantity demanded, and P is the price of tomatoes and Total Cost 50. (30 points) a) Assume that firms {A, B} collude. Find the marginal revenue (MR) if both firms behave as a monopoly. Find the marginal cost (MC). Find the quantity that maximizes the monopolist's profits (MC=MR). Find the price charged by the monopoly. Assuming that the total quantity is divided equally between the firms, calculate the profit for each firm in this collusion. (1

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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1. Imagine that the market of tomatoes is determined by the following demand
expression
P=200-Q_d
Where Q_d is the quantity demanded, and P is the price of tomatoes and Total
Cost 50. (30 points)
a) Assume that firms {A, B} collude. Find the marginal revenue (MR) if both firms
behave as a monopoly. Find the marginal cost (MC). Find the quantity that
maximizes the monopolist's profits (MC=MR). Find the price charged by the
monopoly. Assuming that the total quantity is divided equally between the
firms, calculate the profit for each firm in this collusion. (1
Transcribed Image Text:1. Imagine that the market of tomatoes is determined by the following demand expression P=200-Q_d Where Q_d is the quantity demanded, and P is the price of tomatoes and Total Cost 50. (30 points) a) Assume that firms {A, B} collude. Find the marginal revenue (MR) if both firms behave as a monopoly. Find the marginal cost (MC). Find the quantity that maximizes the monopolist's profits (MC=MR). Find the price charged by the monopoly. Assuming that the total quantity is divided equally between the firms, calculate the profit for each firm in this collusion. (1
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