A cartel is maximizing profit at a price of $38.12 per ton for its product. The demand curve for the members' product is given by the following equation:
Q = 216,200 - 5000P, so that MR = 43.24 - .0004Q
Suppose that there are three firms in the cartel with the following respective marginal cost functions:
MC₁ = 3 + .003Q₁
MC₂ = 2 + .003875Q₂
and
MC₃ = 2.6 = .004Q₃
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 $38.12 per ton for its product. The demand curve for the members' product is given by the following equation: Q = 216,200 - 5000P, so that MR = 43.24 - .0004Q Suppose that there are three firms in the cartel with the following respective marginal cost functions: MC₁ = 3 + .003Q₁ MC₂ = 2 + .003875Q₂ and MC₃ = 2.6 = .004Q₃ 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 $38