Draw the demand curve to scale on a diagram

Reference no: EM131072306

Two firms in a particular industry face a market demand curve given by the equation P = 100-(1/3)Q. The marginal cost is $40 per unit and the marginal revenue is MR = 100- (2/3)Q.

(a) Draw the demand curve to scale on a diagram, and then insert the corresponding marginal revenue curve and the MC curve.

(b) If these firms got together to form a cartel, what output would they produce and what price would they charge?

Reference no: EM131072306

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