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How many units of output will the cheating firm decide

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Consider four Cournot firms, each with a marginal cost of production of MC=4. The market demand curve is given by Q=(100-P)/3 . Suppose the four firms agree to collude and behave as a monopoly, deciding to split the profit-maximizing output equally by agreeing to individual production quotas. Suppose all but one firm abides by their production quotas. How many units of output will the cheating firm decide to produce in this collusive monopoly?

Reference no: EM132500526

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