2 Quick Buck and Pushy Sales produce and sell marginal and average cost Below is...
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2 Quick Buck and Pushy Sales produce and sell marginal and average cost Below is the market demand and marginal revenue curves for the product 4 00 2 00 a 1 00 MR 2000 3000 D 4000 Q Quick Buck and Pushy Sales have agreed to each produce half the profit maximizing monopolist quantity set the monopoly price and split the profits evenly Suppose Quick Buck can cheat on Pushy Sales and reduces its price to 1 00 each while Pushy Sales continues to comply with the collusive agreement Find the economic profit for both firms if they cooperate and charge the same price b Find the economic profit for both firms if Quick Buck breaks the agreement and
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