Question: Consider the market for widgets. Assume there are two companies with identical cost structure and an inverse market demand curve of P = 138-4Q

Consider the market for widgets. Assume there are two companies with identical

Consider the market for widgets. Assume there are two companies with identical cost structure and an inverse market demand curve of P = 138-4Q Assume marginal cost of MC = 18. A) Determine the equilibrium price and quantity under joint profit maximization (cartel), Cournot duopoly and Bertrand competition. B) Show consumer surplus, producer surplus and total surplus for all three market structures.

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A The equilibrium price and quantity under joint profit maximization cartel is P 90 ... View full answer

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