Resources

Submit

Antel

options

Increase

production $($act independently$)$

Antel profit: $ $$ million

IMD profit: $ $$ million

b$.$ What would be the best collective option for both firms?

The firms should

$-...-$

$?$

$$ million

c$.$ Select the reasons Antel and IMD would make more profit at the original, constant production level.

The original production level is more profitable because

it restricts the supply of computer chips. overall demand for computer chips will increase. they can both charge more for the product at the given level of production.