Assume that demand for a product that is produced at zero marginal cost is reflected in the table below.

a.What is the profit-maximizing level of output for a group of oligopolistic firms that operate as a cartel?  (4 marks). 
b.Assume that this market is characterized by a duopoly in which collusive agreements are illegal. What market price and quantity will be associated with a profit-maximizing Nash equilibrium? (5 marks) 
c.Describe the output and price effects that influence the profit-maximizing decision faced by a firm in an oligopoly market. How does this differ from output and price effects in a monopoly market? (4 marks).

Order your Assignment today and save 15% with the discount code ESSAYHELP