Given the industry demand QD = 60 - 10.0P and supply function QS = 20.0P. Assuming the industry is organized into a cartel, what is the industry price/output combination that will maximize profits for cartel members? Hint: as a cartel, industry MR = 6 - 0.2Q and, since the industry supply curve represents the horizontal sum of the marginal cost curves for individual producers, MC is the inverse supply curve.

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To find the industry priceoutput combination that will maximize profits for cartel members we need t... View the full answer