On the planet Economus, the demand for Kryptonite is:
QD = 24.08 - 0.06P P = 401
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QD. There are four producers of Kryptonite on the planet who have formed a Kryptonite Cartel. The resulting marginal revenue function for the cartel is:
MR(Q) = 401
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Q. The marginal costs for producing Kryptonite for the 4 different producers are:
MC1 ( q1) = q1,
MC2 ( q2) = 1.5 q2,
MC3 ( q3) = 2 q3,
MC4 ( q4) = 2.5 q4.
Determine the Cartel profit maximization output levels of each producer. If producer #2 cheats and produces 50% more than their collusive output level, determine their new revenue level.
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