Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure. There are two firms in the blastopheme industry. The demand curve for blastophemes is given by p= 3,000 - 2q. Each firm has one manufacturing plant and each firm i has a cost function C(qi) = qi²,where q; is the output of firm i. The two firms form a cartel and arrange to split total industryprofits equally. Under this cartel arrangement, they will maximize joint profits ifO they produce a total of 500 units, no matter which firm produces them.O and only if each firm produces 300 units in its plant.O they shut down one of the two plants, having the other operate as a monopoly and splitting the profits.they produce a total of 600 units, no matter which firm produces them.O and only if they each produce a total of 750 units.

A cartel is a formal or informal agreement among a group of independent entities, such as businesses…

There are two firms in the blastopheme industry. The demand curve for blastophemes is given by p = 3,000 - 2q. Each firm has one manufacturing plant and each firm i has a cost function C(qi) = qi², where q; is the output of firm i. The two firms form a cartel and arrange to split total industry qi profits equally. Under this cartel arrangement, they will maximize joint profits if O they produce a total of 500 units, no matter which firm produces them. O and only if each firm produces 300 units in its plant. O they shut down one of the two plants, having the other operate as a monopoly and splitting the profits. O they produce a total of 600 units, no matter which firm produces them. O and only if they each produce a total of 750 units.

There are two firms in the blastopheme industry. The demand curve for blastophemes is given by p = 3,000 - 2q. Each firm has one manufacturing plant and each firm i has a cost function C(qi) = qi², where q; is the output of firm i. The two firms form a cartel and arrange to split total industry qi profits equally. Under this cartel arrangement, they will maximize joint profits if O they produce a total of 500 units, no matter which firm produces them. O and only if each firm produces 300 units in its plant. O they shut down one of the two plants, having the other operate as a monopoly and splitting the profits. O they produce a total of 600 units, no matter which firm produces them. O and only if they each produce a total of 750 units.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 3E

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