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On the Planet Economus, the Demand for Kryptonite Is:
QD     \iff

Question 109

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On the planet Economus, the demand for Kryptonite is:
QD = 24.08 - 0.06P     \iff P = 401  On the planet Economus, the demand for Kryptonite is: Q<sup>D</sup> = 24.08 - 0.06P  \iff  P = 401    - 16    Q<sup>D</sup>. 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    - 33    Q. The marginal costs for producing Kryptonite for the 4 different producers are: MC<sub>1</sub> ( q<sub>1</sub>) = q<sub>1</sub>, MC<sub>2</sub> ( q<sub>2</sub>) = 1.5 q<sub>2</sub>, MC<sub>3</sub> ( q<sub>3</sub>) = 2 q<sub>3</sub>, MC<sub>4</sub> ( q<sub>4</sub>) = 2.5 q<sub>4</sub>. 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.
- 16  On the planet Economus, the demand for Kryptonite is: Q<sup>D</sup> = 24.08 - 0.06P  \iff  P = 401    - 16    Q<sup>D</sup>. 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    - 33    Q. The marginal costs for producing Kryptonite for the 4 different producers are: MC<sub>1</sub> ( q<sub>1</sub>) = q<sub>1</sub>, MC<sub>2</sub> ( q<sub>2</sub>) = 1.5 q<sub>2</sub>, MC<sub>3</sub> ( q<sub>3</sub>) = 2 q<sub>3</sub>, MC<sub>4</sub> ( q<sub>4</sub>) = 2.5 q<sub>4</sub>. 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.
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  On the planet Economus, the demand for Kryptonite is: Q<sup>D</sup> = 24.08 - 0.06P  \iff  P = 401    - 16    Q<sup>D</sup>. 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    - 33    Q. The marginal costs for producing Kryptonite for the 4 different producers are: MC<sub>1</sub> ( q<sub>1</sub>) = q<sub>1</sub>, MC<sub>2</sub> ( q<sub>2</sub>) = 1.5 q<sub>2</sub>, MC<sub>3</sub> ( q<sub>3</sub>) = 2 q<sub>3</sub>, MC<sub>4</sub> ( q<sub>4</sub>) = 2.5 q<sub>4</sub>. 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.
- 33  On the planet Economus, the demand for Kryptonite is: Q<sup>D</sup> = 24.08 - 0.06P  \iff  P = 401    - 16    Q<sup>D</sup>. 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    - 33    Q. The marginal costs for producing Kryptonite for the 4 different producers are: MC<sub>1</sub> ( q<sub>1</sub>) = q<sub>1</sub>, MC<sub>2</sub> ( q<sub>2</sub>) = 1.5 q<sub>2</sub>, MC<sub>3</sub> ( q<sub>3</sub>) = 2 q<sub>3</sub>, MC<sub>4</sub> ( q<sub>4</sub>) = 2.5 q<sub>4</sub>. 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.
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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Note that Q = q1 + q2

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