Suppose there are two firms producing crude oil in the market

Economics Dec 06, 2020

Suppose there are two firms producing crude oil in the market. The market demand curve is linear and is given as follows: Q(p) = 300 - 2p, where Q is the number of barrels of crude oil. The marginal cost to produce per barrel of crude oil is $30 and there is no fixed cost. If the two firms form a Cartel (monopolist) and jointly produce the monopolist's profit-maximizing output level, what will the price of crude oil be in the market? 30 o 70 O 120 O 90 60
Suppose there are two firms producing crude oil in the market. The market demand curve is linear and is given as follows: Q(p) = 300 - 2p, where Q is the number of barrels of crude oil. The marginal cost to produce per barrel of crude oil is $30 and there is no fixed cost. If the two firms compete in a Bertrand model, what will the price of crude oil be in the market? 120 30 o 70 O 90 o 60

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