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Homework answers / question archive / Need Price for every cartelization level, the market output, market profits, cartel output and profits, and need noncartel firm(s) output and profit
Need Price for every cartelization level, the market output, market profits, cartel output and profits, and need noncartel firm(s) output and profit. This if for 5 firms. Starting as one firm making a cartel all the way through the 5th firm joining the cartel.
GIVEN: Q=100-p P=10+qi for all i=1......5
TC=10qi+1/2qi^2=per firm total cost
TC=10(Qr/(n-j))+1/2(Qr/(n-j)^2)=cartel firm cost
TC=10(Qj/j)+1/2(Qj/j)^2)=non cartel firm cost
j=firms not in the cartel
n=number of firms.
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