What prot does each firm earn with such collusion

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Reference no: EM13203254

Suppose that two firms compete in quantities (Cournot) in a market in which demand is described
by P = 260 - 2Q. Each firm incurs no fixed costs but has a constant marginal cost of 20.
a. What is the one-period Nash equilibrium market price? What is the output and profit of each firm in the equilibrium?
b. What is the output of each rm if they collude to produce the monopoly output? What prot does each firm earn with such collusion?

Reference no: EM13203254

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