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.