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There Are Two Firms in the Blastopheme Industry

question 5

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There are two firms in the blastopheme industry.The demand curve for blastophemes is given by p = 4,200 - 3q.Each firm has one manufacturing plant and each firm i has a cost function C(qi) = q2i, where qi is the output of firm i.The two firms form a cartel and arrange to split total industry profits equally.Under this cartel arrangement, they will maximize joint profits if


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