The table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0, FC=0) Q demanded Price 1 $18 2 $16 3 $14 4 $12 5 $10 6 $9 7 $7 8 $6 9 $5 Assume the two producers initially collude to maximize profits, splitting production and profits evenly. What price will they charge? $___________   What is the total quantity produced?   __________monster trucks   What are the profits for each firm? $___________

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter24: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 13CQ
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The table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0, FC=0)

Q demanded Price
1 $18
2 $16
3 $14
4 $12
5 $10
6 $9
7 $7
8 $6
9 $5

Assume the two producers initially collude to maximize profits, splitting production and profits evenly.

What price will they charge?
$___________
 
What is the total quantity produced?
 
__________monster trucks
 
What are the profits for each firm?
$___________
 
 
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