Calculate maximize total industry profits

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The two beverages companies Barnco and Petrico are duopolists who produce identical products. Demand for the beverages is given by the following linear demand functions: P=200-q1-q2, where q1 and q2are the quantities produce by the respective firms and P is the selling price. Total cost functions of the two companies are: TC1=1500+55q1+q12and TC2=1200+20q2+2q22. Assume that the firms form a cartel to act as a monopolist and maximize total industry profits.

Reference no: EM13884488

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