Collusion Vs. Self-Interest: Exercise-2

In Brief

This page includes questions related to the Collusion versua Self-Interest.
This helps learners to ensure their learning on aspects of economics in general but also how collusion intersects with self-interestin particular.

Introduction

Collusion Vs. Self-Interest
Collusion Vs. Self-Interest 1
Duopoly outcome with collusion: Each firm agrees to produce Q = 170, earns profit = $6,800.
If Vodafone reneges on the agreement & produces Q = 250, what happens to the market price? And Vodafone's profits?
Is it in Vodafone's interest to renege on the agreement?
If both firms renege and produce Q = 250, determine each firm's profits.
Collusion Vs. Self-Interest-2
P Q
$01000
$5900
$10800
$15700
$20600
$30500
$40420
$50300
$60200
$70100


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