A cartel is maximizing profit at a price of $56.50 per ton for its product. The demand curve for the members' product is given by the following equation:
Q = 83,000 - 1000P, so that MR = 83 - .002Q
Suppose that there are three firms in the cartel with the following respective marginal cost functions:
MC₁ = 5 + .002Q₁,
MC₂ = 3 + .003Q₂,
and
MC₃ = 2.5 + .0055Q₃
How much output should be allocated to each cartel member? Assume that Q is yearly output in tons and that MC is marginal cost per ton)

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The Answer of A cartel is maximizing profit at a price of $56.50 per ton for its product. The demand curve for the members' product is given by the following equation: Q = 83,000 - 1000P, so that MR = 83 - .002Q Suppose that there are three firms in the cartel with the following respective marginal cost functions: MC₁ = 5 + .002Q₁, MC₂ = 3 + .003Q₂, and MC₃ = 2.5 + .0055Q₃ How much output should be allocated to each cartel member? Assume that Q is yearly output in tons and that MC is marginal cost per ton)

A Cartel Is Maximizing Profit at a Price of $56