Cooper_1.doc
The competitive price for widgets is $10 and industry output is 100 (Biff does 50 & Rocky does 50), but the cartel price is $15 and monopolistic output is 80. Biff and Rocky could each cut output by 10, but, they would each prefer to have a bigger share of the market. Biff would love to keep production at 50 and have Rocky cut it to 30. ................
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