For the same statement in Problem 8, determine the equilibrium price and quantity of exports of the commodity if the supply curve refers to a cartel of exporters acting as a monopolist.
Problem 8
Draw a straight-line demand curve for a commodity crossing both axes and its corresponding marginal revenue curve (lying everywhere halfway between the vertical axis and the demand curve). On the same graph, draw a hypothetical supply curve for the commodity crossing the demand and marginal revenue curves. If the demand and supply curves refer to the perfectly competitive market for exports of the commodity, determine the equilibrium price and quantity of exports of the commodity.