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Industry demand is given by: P=150 – 3Q Cost curve for individual firm is given by:...

Industry demand is given by:

P=150 – 3Q

Cost curve for individual firm is given by: TC=5qi+2qi2

Assume there are 2 firms in the industry A and B. Costs are the same for both firms.

Find price, output and profit given that it is a centralized cartel.

Find prices and output for an individual firm and profit given that it is a decentralized cartel.       

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