Produce the profit-maximizing output

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Reference no: EM131282698

Two identical firms make up an industry in which the market demand curve is represented by P = 1,250 - 0.25Q, where Q is the quantity demanded and P is price per unit. The marginal revenue curve is given by MR = 1,250 - 0.5Q. The marginal cost of producing the good in this industry is constant and equal to $650, and the fixed cost is zero. When the firms collude and produce the profit-maximizing output, what is the profit earned by each firm?

Reference no: EM131282698

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