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please help me

Answered Same Day Dec 21, 2021

Solution

David answered on Dec 21 2021

132 Votes

WITH COLLUSION:
Equate MR with MC
TR= P*Q= Q*(268-4Q)
MR= 268 -8Q
MC= 12
So 268-8Q= 12
Q= 32
P= 268-4*32 =140
Each firm makes 16 units.
Profits= TR- TC = 140*32 -12*32 =4096 or 2048 to each
WITH PRICE WAR:
P= MC= 12
And Q= (268-12)/4 = 64
Each firm makes 64/2 =32 units
Profits =...

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