Figure 15P-4 shows the monthly demand curve for a good in a duopoly market. There are no fixed costs.
a. What is the monthly profit for each duopolist if they evenly split the quantity a monopolist would produce?
b. What is the deadweight loss if the duopolists evenly split the quantity a monopolist would produce?
c. What is the monthly profit for duopolist A and duopolist B if duopolist A decides to increase production by 10 units?
d. What is the deadweight loss if duopolist A increases production by 10 units?