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(Figure: Cartel I)

Question 157

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(Figure: Cartel I) (Figure: Cartel I)    If two firms selling identical products act as a cartel and split the market evenly, each firm will earn profits of _____. Why is quantity collusion not considered a Nash equilibrium?
If two firms selling identical products act as a cartel and split the market evenly, each firm will earn profits of _____. Why is quantity collusion not considered a Nash equilibrium?

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The two firms will try to operate as a m...

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