Question: Consider a hypothetical demand schedule for monosodium lutamate ( MSG ) . Suppose that Ajinomoto holds 5 0 % of the narket, Jiali holds 3
Consider a hypothetical demand schedule for monosodium lutamate MSG Suppose that Ajinomoto holds of the narket, Jiali holds of the market, and Quingdao holds of the market.
Suppose the three firms agree to form a cartel to fix production of monosodium glutamate. Assume marginal cost equals zero, and the output is split equally across the firms.
What quantity maximizes the cartel's profit?
million pounds
tabletablePrice of MSG$ per pound$
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