Compute the total output produced by both firms

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Consider the example developed in Section 11.5, assuming this time that firm A has a MC of $4 per unit, and B has a MC of $6.

(a) Compute the level of output each will produce

(b) Compute the total output produced by both firms.

(c) Compute the profit made by each firm.

(d) Comparing their combined output with the output when the MC of each firm is $6, explain why the totals differ.

Reference no: EM131072276

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