Refer to the information below. If the firms' managers form a price -fixing cartel that maximizes the firms' total profit, what is the total quantity produced by all firms?
A small nation has three gasoline suppliers with a linear monthly market demand equal to: Q = 500,000 - 5P. Each firm's marginal cost (MC) and average total cost (ATC) curves are horizontal at $10,000 per month.
A) 450,000 B) 22,000 C) 225,000 D) 45,000
C) 225,000
Economics
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