The following table shows the long-run equilibrium if the firms act independently, as in the Cournot model (i.e., each f

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The Following Table Shows The Long Run Equilibrium If The Firms Act Independently As In The Cournot Model I E Each F 1 (29.16 KiB) Viewed 35 times

The following table shows the long-run equilibrium if the firms act independently, as in the Cournot model (i.e., each firm assumes that the other firm's output will not change). Cournot Equilibrium Company A Company B Total Industry Price ($) (units) 290 60 290 50 Output Profits ($) 5,700 6,300 Selling price Total industry output Total industry profits 110 Compare the optimal solutions obtained in this exercise with the Cournot equilibrium given in the preceding table. What happens to the optimal selling price, total industry output, and total industry profits when the two firms form a cartel instead of acting independently? Decrease No change Increase O $12,000 O