Assume the demand curve for apples is given by Q = 100 – 4p.

Assume the demand curve for apples is given by Q = 100 – 4p.

Assume the demand curve for apples is given by Q = 100 – 4p. Each farmer produces apples at a cost C… Show more Assume the demand curve for apples is given by Q = 100 – 4p. Each farmer produces apples at a cost C(Q) = 2Q and sells them on a competitive market. The farmers meet and think about forming a cartel. The government knows the demand curve and marginal costs. It wants to fine the farmers if they form a cartel. What is the size of the fine which makes farmers indifferent between forming a cartel and selling their apples on a competitive market? Answer: 529. How to calculate this? • Show less

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