(Table: Demand Schedule for Gadgets) The market for gadgets is dominated by two producers, Margaret and Ray.Each firm can produce gadgets at marginal costs of approximately $0 and has no fixed cost.The table shows the market demand schedule for gadgets.a) If these firms form a cartel to maximize joint profits, what output level will be produced and at what price? If the output is shared evenly, how much profit will each firm earn?
b) Suppose that Margaret decides to increase production by 100 gadgets and Ray leaves output constant.What will be the new market price and output? How much profit will each firm earn?

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The Answer of (Table: Demand Schedule for Gadgets) The market for gadgets is dominated by two producers, Margaret and Ray.Each firm can produce gadgets at marginal costs of approximately $0 and has no fixed cost.The table shows the market demand schedule for gadgets.a) If these firms form a cartel to maximize joint profits, what output level will be produced and at what price? If the output is shared evenly, how much profit will each firm earn?
b) Suppose that Margaret decides to increase production by 100 gadgets and Ray leaves output constant.What will be the new market price and output? How much profit will each firm earn?

(Table: Demand Schedule for Gadgets) the Market for Gadgets Is