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
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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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