Question: Using the graph above, answer the following questions: (a) If the firms' managers compete with each other, what are the price and quantity of

Using the graph above, answer the following questions: (a) If the firms' managers compete with each other, Price 350 300 250 225 200 150 100 50 0 0 50 Market for Computer Monitors 100 134 150 S = MC D MR 200 VEJEN

Using the graph above, answer the following questions: (a) If the firms' managers compete with each other, what are the price and quantity of computer monitors in the market equilibrium? (b) Suppose that the producers form a cartel that maximizes the firms' total profit. What now are the price and quantity of computer monitors? (c) In which scenario (part a or b) do the firms make a larger economic profit? Your answer must include calculations for the economic profit in both (a) and (b). Table Price 350 300 250 225 200 150 100 50 0 0 50 Market for Computer Monitors 100 134 150 S = MC D MR 200 VEJEN 250 Quantity

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