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Firms A and B operate as a centralized cartel. Their marginal cost functions are defined below:...

Firms A and B operate as a centralized cartel. Their marginal cost functions are defined below:

MCA = 2000 + 25QA

MCB = 2000 + 6.25QB

The firms face the following market demand curve: Q = 1000 – 0.05P

Determine the market price that the firms should charge and the quantity of output that should be produced by each firm.

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