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A Cournot Oligopoly (duopoly) exists where the market demand...

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A Cournot Oligopoly (duopoly) exists where the market demand...

A Cournot Oligopoly (duopoly) exists where the market demand function facing each of the two firms is

P = 4 - (Q1 + Q2) , where Q = (Q1 + Q2) and the MC facing each firm is zero. 

If the two firms form a cartel, what is the market quantity (Q) and market price (P) that will prevail?

Question 24 options:


3, 1


1, 3


4/3, 4/3


2, 2

Answer & Explanation

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Answered by MicheniP on coursehero.com

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Step-by-step explanation

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