Question: 4. Suppose that demand is given by P = A Q and marginal costs are constant and equal to c where A > 0. Assume

4. Suppose that demand is given by P = A Q and marginal costs are constant and equal to c where A > 0. Assume that there are two rms that are Cournot competitors and they play a supergame. Find the critical value of the discount factor required to sustain a collusive agreement specifying an equal sharing of monopoly prots through grim punishment strategies

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