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Frontier of agreements that may form the basis of a cartel

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Let demand for car batteries be such that Q = 10 - 2P. Assume constant marginal costs of 3. Compute the equilibrium price, quantity, consumer surplus, producer surplus for Suppose a discount factor of 0.96 and a duopoly structure on agreements. What is the Pareto frontier of agreements that may form the basis of a cartel?

Reference no: EM131994596

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