What would the equilibrium price and quantity be

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Suppose we have a duopoly in the production of mineral spring water. Each firm has the same cost structure where MC(Q) = 10. The market demand for mineral spring water is given by: P = 70 - Q/50

Suppose the two firms collude to maximize joint profits. What would the equilibrium price and quantity be? How much profit is made in the industry and by each firm? (You can assume that the two firms evenly divide production.) What does this say about cartel behavior?

Reference no: EM13156853

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