Question: help me work through this Assume there are three partnering countries who control all of the world's supply of oil. Inverse demand for oil is
help me work through this
Assume there are three partnering countries who control all of the world's supply of oil. Inverse demand for oil is given by the equation P = 100 2Q, where P is the per-unit price of oil and Q is the quantity. Marginal costs are identical across countries at $20 per unit of oil. These three partnering countries form a cartel and act as a monopolist to maximize profits. What quantity do they choose? | What per-unit price do they set? $ | If they split profit three ways, what is the individual profit of each country? $ | (Round to two decimals if necessary.)Step by Step Solution
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