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Suppose that Firm A and Firm B are two of the largest producers of a special pool-cleaning robot. Suppose that the marginal cost of making such a robot is constant at $1,500 per unit and there is no start-up cost. The demand for the robot is described by the following table.
Price
Quantity
TR (Millions)
MR
MC (Millions)
TC
Profit
$8,500
5,500
46.75
0
7,500
6,500
48.75
2 million
1.5
8,500
4,500
9,500
42.75
4 million
3,500
10,500
36.75
6 million
2,500
11,500
28.75
1,500
12,500
18.75
10 million
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