Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Mega cheats on the agreement by reducing its price to $1 while Acme continues to comply with the collusive agreement, then Mega will then sell units and Acme will sell units.
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Suppose Acme and Mega decide to collude and work together as a monopolist with each firm producing h...
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