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# On the planet Economus, the demand for Kryptonite is: QD = 24.08 - 0.06P  P = 401 - 16 QD. ...

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4 years ago
On the planet Economus, the demand for Kryptonite is:
QD = 24.08 - 0.06P  P = 401  - 16 QD.  There are four producers of Kryptonite on the planet who have formed a Kryptonite Cartel.  The resulting marginal revenue function for the cartel is:
MR(Q) = 401  - 33 Q.  The marginal costs for producing Kryptonite for the 4 different producers are:
MC1 ( q1) = q1,
MC2 ( q2) = 1.5 q2,
MC3 ( q3) = 2 q3,
MC4 ( q4) = 2.5 q4.
Determine the Cartel profit maximization output levels of each producer.  If producer #2 cheats and produces 50% more than their collusive output level, determine their new revenue level.
Textbook

## Microeconomics

Edition: 8th
Author:
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CanihCanih
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4 years ago

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4 weeks ago Edited: 4 weeks ago, Andrew Pudan
 Thank you so muchPost Merge: 4 weeks agoFor reference: I only said "Thank you so much" (alongside the other amazing industrial economics students above me) because the website forced me to. The answer is just a semi-broken copy+paste from the default answer sheet and doesn't explain from what mysterious hole the (apparently obvious) MCC=(30/77)Q came from.